Airfares Rising Again

By Cornelius Nunev


In the past couple of years, seldom is it ever the case that airfares are decreasing. Charges and higher costs of fuel make traveling a more expensive proposition every year. A new round of airfares rising has just been documented, as the airlines are at least consistent.

Another round of price increasing

A lot of airlines have increased base airfares by a lot recently, starting with United Airlines. The airline business increased charges by $4 to $10 depending on the route, according to FareCompare.com. After that, JetBlue, Virgin and Southwest Air carriers also all elevated their charges. Everybody appears to be interested in increasing fares now. It also increased at US Airways, American Airlines and Delta.

There have been seven tries to increase airfares this year, though this is just the fourth time it has stuck.

Not large increase

Fares increase nine times last year, which was a big deal. Even though $4 to $10 is not that big of a deal, it is big when added up over the year.

A lot of people will find that it is really not that bad since air carriers such as Southwest are not increasing prices on flights under 500 miles. Many people could save cash by traveling in the off-season too, which is fall since fewer people travel in the fall. Airlines will cut ticket prices by 10 to 20 percent in the fall typically because it is so slow.

Sometimes, a fee is added to the trip that you were not expecting, according to the LA Times, such as airline fuel surcharges. Since April 2011, surcharges have increased 53 percent in spite of the fact that fuel has only increased by 24 percent, according to a study by Cason Wagonlit Travel that showed just how much fuel surcharges are increasing.

Air carriers for America are a trade group for United States air companies that explained fuel costs were only $3.00 per gallon in 2010. It really has not increased that much since now it is about $3.05 per gallon.

Not making as much as you think

Regardless of the fact that air carriers make billions of dollars off of extra fees such as baggage fees, you would be amazed to see how much those airlines really take home after paying all of their own charges. The Huffington Post points out that airline fees are really decreasing right now, and fuel surcharges have to be revealed under federal laws for ticket prices now.

If you would like to be able to fly in the skies, you have to deal with the fuel costs. A 2010 CNN article explained that on average, a flight from LA to New York was, at the time, about $506.62, and only $33.34 of it was profit, or about 6.6 percent. About $200 goes into labor and fuel costs, $97.85 percent of which goes into fuel. The profit margin decreases to 4.8 percent with a 10 percent increase in fuel costs to $23.67.




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