Airlines in touch with White House amid concerns over price gouging by Helene and Milton.
- The Department of Transportation is in touch with airlines regarding the affordability of flights in regions affected by Hurricane Helene and those preparing for Hurricane Milton, as fears of price gouging intensify.
- During disasters like hurricanes, the alarm about price gouging tends to intensify as demand increases for items such as last-minute flights and survival supplies.
- The Biden-Harris administration's claims that "price gouging" by corporations is a contributing factor to consumers' frustrations with high prices have been revived by concerns.
The Department of Transportation is in touch with airlines regarding the affordability of flights in regions affected by Hurricane Helene and those preparing for Hurricane Milton, as fears of price gouging intensify.
A DOT spokesperson informed CNBC that officials have communicated with airlines to obtain additional details regarding the availability and cost of flights in the affected regions.
During disasters like hurricanes, the alarm about price gouging tends to intensify as demand increases for items such as last-minute flights and survival supplies.
Retailers inflate prices dramatically when costs do not increase, and consumers are particularly susceptible to this practice during crises when demand exceeds supply.
Pete Buttigieg, the Transportation Secretary, stated in a Monday post that his agency is closely monitoring flights in and out of areas affected by Hurricane Milton to ensure airlines are not charging excessive fares.
He stated that the Department treats all claims of airline price-gouging with utmost seriousness.
The western coast of Florida is bracing for Hurricane Milton to hit on Wednesday, exacerbating the damage caused by Hurricane Helene, which hit the southeastern U.S. a week ago.
Local officials have urged residents to evacuate in areas where Milton is expected to have the worst impact.
Since Tuesday morning, flights at Tampa International Airport have been halted, and Orlando International Airport plans to stop operations at 8:00 a.m. ET on Wednesday.
Flights have been added by American Airlines and United Airlines to aid in evacuating the region.
The demand for airline tickets and other goods has increased, causing prices to rise, which has intensified concerns that companies may exploit consumers during this crisis.
The Florida Attorney General's Office on Saturday extended the state's "price gouging hotline," allowing consumers to file complaints as the state prepares for Hurricane Milton.
Over 450 consumer complaints have been filed with the Florida AG's office accusing of price gouging related to Helene, primarily concerning fuel. Additionally, more than 200 contacts have been received regarding Milton, mainly about fuel and water.
The use of the term "price gouging" during natural disasters is common, but its political implications are particularly significant, given the upcoming presidential election that is expected to be very close.
Kamala Harris, the Democratic nominee and Vice President, has proposed a federal ban on price gouging in the grocery sector as part of her campaign's economic platform, although she acknowledges that most corporations do not artificially inflate prices.
"In a Tuesday interview on the "Howard Stern Show," Harris stated that during emergencies like storms and hurricanes, some individuals may take advantage of the situation and increase prices. He emphasized the need to address these bad actors."
— CNBC's Leslie Josephs contributed to this report.
Politics
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