Business
Airlines are going premium. Prices are rising. Will cheap tickets be harder to find?
In the midst of holiday shopping and travel, Colorado resident Tom Pipes didn’t want to spend extra money on a plane ticket. He flew from Colorado to Los Angeles on Southwest, the grandfather of budget-friendly airlines.
“If there was a first-class option, I wouldn’t use it,” Pipes said this week after arriving at Los Angeles International Airport. “I fly for the price.”
Unfortunately for Pipes and travelers like him, inexpensive tickets probably are going to become increasingly difficult to find.
Over the last year, the average cost of a domestic U.S. flight increased more than 4% to $269 in November, U.S. Bureau of Labor Statistics figures show. It is a trend line that is expected to continue as budget airlines stumble due to rising costs and a crowded field of competitors, while the industry’s major carriers press ahead with strategies focused on pricier, premium ticket options.
“You can expect to see pricing across the board firm up and move higher,” said Tom Fitzgerald, an industry analyst at TD Securities. “If you’re really price sensitive, there may not be as many deals for you.”
A traveler speaks with a Spirit Airlines agent at Hartsfield-Jackson Atlanta International Airport ahead of Memorial Day, on May 24, 2024, in Atlanta.
(Mike Stewart / Associated Press)
American, Delta and United are the world’s three largest airlines and are projected to account for 97% of the industry’s operating profit in the U.S. this year, according to a Deutsche Bank report. In an attempt to catch up, low-cost carriers are rolling out more expensive options for seats that come with perks such as early boarding and extra legroom, leaving less room on the plane for the lowest priced tickets.
Spirit, which filed for Chapter 11 bankruptcy in November, rolled out its version of first class this year. Frontier will offer a first-class option in late 2025 and JetBlue announced this month that the airline will add first-class seats to domestic flights by 2026.
“Budget airlines are trying to find ways to boost their revenue and they know that people are willing to pay more for a better product,” said Michael Linenberg, an airline equity researcher at Deutsche Bank. “The average price is going to be higher and we may see a net reduction in seats that are allocated to the lower-fare price buckets.”
As budget airlines try to recast themselves, major airlines are catering more to higher-paying travelers with premium ticketing options, which is reducing the proportion of seats in the cheapest category, industry analysts said. United, for example, offers five tiers of tickets ranging from basic economy to first-class, giving customers the option to pay more for a refundable ticket or a ticket that comes with free bags.
The price listed Thursday on United’s website for a basic economy ticket from Los Angeles to New York on Saturday, Jan. 4, was $347, which allows the traveler to carry on only one small item such as a purse. Of the nine flights from Los Angeles to New York that United operates that day, basic economy tickets were still available on only two.
For $50 more, a customer could select a seat and bring a carry-on bag, but they would have to shell out $55 more to get a fully refundable ticket. A premium economy seat on the same flight was priced at $724 and a first-class ticket cost $1,643.
Similarly, Delta offers main cabin tickets and “comfort plus” tickets, as well as an option above first class dubbed Delta One. While a first-class Delta ticket from Los Angeles to New York on Jan. 4 cost $1,059, a Delta One ticket was priced at $1,599 and comes with lie-flat seats. Spirit’s cheapest fare to New York from Los Angeles on Jan. 4 is $246, while its most expensive option is $416.
Sophy Chang, 32, recently flew Delta from New York to Los Angeles and chose the cheapest ticket option. Although her seat was toward the back of the plane, she said she was comfortable enough and grateful to be on a direct flight. She’s a regular Delta customer and said she typically has a good experience.
“I definitely wouldn’t mind extra legroom,” Chang said. “I care about it more on longer flights.”
A woman waits for her flight as an American Airlines jet passes by at Sky Harbor airport in Phoenix in 2023.
(Charlie Riedel / Associated Press)
Further widening the gap that has developed in the industry are conveniences and high-end perks offered by larger carriers that budget airlines can’t match. Low-cost carriers have fewer direct flights to fewer destinations and lack the luxurious airport lounges that other first-class travelers have access to.
Delta recently completed a renovation of its two terminals at Los Angeles International Airport, including the addition of a Delta One lounge with private check-in and fine dining options. By the end of the year, Delta plans to offer customers more than 700,000 square feet of lounge space across 56 Sky Clubs and three Delta One lounges.
“Demand for travel on Delta remains healthy with continued preference for our premium offerings,” said Delta President Glen Hauenstein during the company’s most recent earnings call. “Our new Delta One lounges in New York and L.A. with dedicated check-in and private TSA security truly differentiate Delta’s premium offering.”
So far this year, 57% of Delta’s revenue has been generated through sales other than main cabin tickets, Hauenstein said. The focus on higher-priced tickets reflects changes in consumer preferences, including a post-pandemic shift toward spending on experiences over tangible goods, experts said.
“Since COVID-19, there are more people not wanting a miserable travel experience who are willing to pay more for a more comfortable journey,” Fitzgerald said. “It’s been an arms race for the airlines to offer more of a premium product.”
No-frills airlines that lack these perks are built to have lower ticket prices than the major carriers, but rising operating costs have made that difficult to achieve. Budget airlines need to pay the same prices for airport space, jet fuel and labor as the big players do, said Mike Boyd of Boyd Group International, an aviation consulting firm.
“The pilot flying for Frontier, he or she wants the same money that the American Airlines pilot is getting because they’re flying the same airplanes,” Boyd said.
Budget airlines are also struggling in part because there are too many of them, including six publicly traded carriers such as Allegiant and Sun Country, Deutsche Bank’s Linenberg said. The companies will have to consolidate in order to survive, leaving fewer ticket options for customers.
“Many of them are losing money because they’re all competing with each other for that same price-sensitive customer,” Linenberg said. “Part of the industry is going to restructure, and at the end of the day, the consumer will be facing higher fares.”
According to a Deloitte holiday travel survey, 49% of Americans plan to travel between Thanksgiving and mid-January. That number jumps to 66% among those with household incomes of $100,000 or higher, and falls to 34% among those who make $50,000 or less. Twenty-nine percent of travelers this holiday season will upgrade their airfare this year compared with the type of ticket they purchased last year.
There will always be a market for low-fare tickets, but prices may never return to pre-pandemic levels, according to Fitzgerald at TD Securities.
“There were good days of bargains that people were used to over the 2010s,” he said. “I don’t think those are coming back anytime soon.”
Business
In a first for the country, voters in Monterey Park ban data centers
Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.
As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.
Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.
Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.
That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.
“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”
The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.
The Data Center Coalition, an industry trade group, expressed disappointment in the vote.
“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.
“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”
SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.
The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.
City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.
There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.
“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.
Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.
California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.
That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.
In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.
Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
-
Lifestyle4 minutes agoWith Highway 1 open, Big Sur braces for its busiest summer in years
-
Politics11 minutes agoCommentary: Bass clears first hurdle, but if Pratt holds off Raman, the mayoral race could be a holy war
-
Sports19 minutes ago
The Ball brothers’ head coach at Chino Hills, Steve Baik, is the new coach at Calabasas
-
World29 minutes ago
Social media operation linked to Iran manipulated public through fake Irish and Scottish profiles
-
News56 minutes agoNational Guard has done little to reduce violent crime in D.C., a new study finds
-
Los Angeles, Ca2 hours agoMan claiming to be armed robs Culver City bank, gets away with $10,000
-
Detroit, MI3 hours agoFired Detroit TV anchor Taryn Asher files sex discrimination lawsuit against old station, claims new GM protected men
-
San Francisco, CA3 hours agoSan Francisco family devastated as they face nearly 90% rent increase