Financial Stress Has Befallen Many of the Biggest Airlines in the US GMAT Reading Comprehension

Reading Passage Question

Financial stress has befallen many of the biggest airlines in the US. In response, airlines are looking for ways to increase profitability. The newest item of business: make ticket pricing complicated, so consumers have trouble figuring out what their trips actually cost.

The Department of Transportation has been bombarded by airlines asking for advertising rules to be changed so that some costs are not factored into the base price of a ticket. Instead, costs, like a fuel surcharge, are calculated later, making the original advertised price significantly lower than what consumers end up paying for tickets.

It’s true that quoted fares have not been exact fares for quite some time now. Airlines are allowed to split out some government-imposed fees and taxes, but these costs must be shown in the advertisement. Now, airlines want their own surcharges to be held from advertisements, and instead only present them near to the end of the purchasing process. Those who support consumer rights are worried that such a late appearance of extra cost will create unfair purchasing conditions, where consumers are not allowed enough time to carefully consider prices.

Consumers deserve better. If advertising rules change, airlines are sure to take advantage of the opportunity. Fictional surcharges will emerge aimed at ‘lowering prices,’ obscuring the actual cost of fares. Competition among airlines for low fares could, as a result, be based in surcharges, which appear to make some tickets cheaper than others. In the end, consumers will lose the freedom to make accurate choices.

‘Financial stress has befallen many of the biggest airlines’’ is a GMAT reading comprehension passage with answers. Candidates need a strong knowledge of English GMAT reading comprehension.

This GMAT Reading Comprehension consists of 7 comprehension questions.

The GMAT Reading Comprehension questions are designed for the purpose of testing candidates’ abilities in understanding, analysing, and applying information or concepts. Candidates can actively prepare with the help of GMAT Reading Comprehension Practice Questions.

Solutions and Explanation

1. According to the author, fictional surcharges will

1. cause airlines to save money
2. deceive consumers
3. create lower advertised prices

1. II only.
2. II and III only
3. I and III only
4. I and II only
5. I, II, and III

2. The author’s purpose is to:

1. Argue for airline business practices which are fair to consumers.
2. Suggest a way to adjust consumer purchasing power.
3. Defend airline business practices in a time of financial strain .
4. Express a need for creating better incentives for air travel.
5. Present a clear picture of the reasons behind a conflict.

3. The author’s attitude towards airlines and their advertising practices is one of:

1. strong approval
2. straightforward respect
3. passive nonchalance
4. harsh criticism
5. unrestrained anger

4. According to the passage government-imposed surcharges:

1. are an unnecessary burden on consumers.
2. regulate prices differences among airlines.
3. create a confusing purchasing situation for consumers.
4. do not adequately cover the costs they aim to meet.
5. are added to base prices in a fair manner.

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