For years, Southwest Airlines and JetBlue operated under self-imposed fare caps, promising travelers that no ticket would cost more than $299 one way.
Responding to the report, Simon Burns, the transport minister, said the government had lowered the fares cap to 1% above inflation in recognition of the fact that "family budgets are being squeezed".
Despite the retreat from increasing prices by 3% above the RPI rate of inflation, season tickets are still subject to inflation-busting price rises this year because ministers have set the fares cap at RPI +1%.
Eagle said after the election she would squeeze the rail companies by refusing to give them the right to lift the fares cap, and get the bus companies to support concessionary fares for 16- to 18-years-olds in education and training.
The rest – a rail fares cap, a freeze on electricity prices, a commitment not to cut tax credits, a cut in tuition fees, a ban on zero-hours contracts, 25 hours of childcare for working parents of three- and four-year olds, and bringing forward the date by which the £8-an-hour minimum wage will be paid – together represent the red meat of the Labour offer on living standards.
UAL, parent of No. 2 U.S. air carrier United Airlines, reported an $889 million quarterly net loss on weak traffic and fares, capping a week of major airline losses.
The chancellor announced in his Autumn Statement in early December that the regulated fare price cap of RPI inflation plus 1% was being changed to RPI plus 0%.
And while today's rise sees regulated fare hikes capped at 2.5%, the cost increase on unregulated fares, such as off-peak leisure tickets, will be left to train companies' own discretion.
For trips within the city that make no stops, the fare is capped at $19. The Web site taxifarefinder.com, which tracks rates around the country, ranked Washington 25th among 28 major cities for the estimated fare of a typical five-mile trip.
