This might be the end of the runway for airfare increases

by Christopher Elliott on August 4, 2008

Here’s a little good news for air travelers who think they’ll have to take out a second mortgage the next time they fly. In a sign that the sky apparently isn’t the limit for price increases, one airline has cut its fares.

That’s right — they’ve decreased their prices.

JetBlue yesterday announced promotional fares to some Florida cities for some of its airports, including Westchester County. An airline spokeswoman said the carrier had decided to cut the fares for the benefit of the air traveler.

“We know that fuel prices are high and we feel that we’ve got some great destinations across the US and we want to make it easy and affordable for customers to travel,” she said.

The news comes after yet another downbeat report in the Nation’s Newspaper that asks if fares will go so high that only the rich can fly. The answer seems to be “yes” and the paper convincingly quotes airfare experts and surveys to make its point.

But I’ll go out on a limb here and say that the experts are probably wrong and JetBlue is right. First, let’s put the price increases into perspective. Adjusting for inflation, airfares are still about the same price — and in some markets less — than they were a decade ago.

How about the cost of jet fuel? It’s in freefall. For example, a gallon of New York Harbor jet fuel has slipped from $3.83 on July 23 to $3.64 on July 29. If it falls any more, passengers simply won’t buy the “our fuel costs are too high” excuse.

But there’s more going on here than price games. For the first time in a long time (and maybe ever) travelers are willing to give up flying in order to send a message to the domestic carriers. They won’t tolerate endless fare and fee increases while service is being cut.

It looks as if at least one airline has gotten that message. Now if they could only get the message about extra fees …

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Tagged as: airline, fare, increases

  • http://www.travelskills.com/ticket.htm chris

    Hey Chris: Keen insight as always!…..Speaking of fare decreases, check out late summer and fall fares to/from Denver where Frontier and SW are battling it out or just about anywhere along the west coast where Virgin America flies. They are all down YOY and nearly all led by low cost carriers. Sure there are a lot of fares increasing, but there are plenty decreasing, too.

  • Frank

    Here’s a little good news for air travelers who think they’ll have to take out a second mortgage the next time they fly. In a sign that the sky apparently isn’t the limit for price increases, one airline has cut its fares
    ========================================================

    Second Mortgage?…Please, how dramatic! CONTINUE READING:

    This came from the pilot’s union. It refers to an image that you won’t be able to see here: it’s a magazine ad for air travel including the price.

    Consider this for a moment

    Pictured is an old American Airways ticket advertisement from 1932. It features a coast-to-coast ticket for $155 dollars. That was 76 years ago. This week on Travelocity.com, we found one-way coast-to-coast American Airlines (JFK-LAX) tickets for less ($146)!
    How can airline ticket prices not have changed in nearly 80 years when the price of everything else has? Using the governments inflation calculator, $100 in 1932 would be an equivalent of $1,597 today. Consider the following price comparisons between the 1930s and now (source: thepeoplehistory.com Web site):

    A gallon of gasoline was $.10, and now its $4.00
    A dozen eggs was $.18, and now its $3.46
    Box of breakfast cereal was $.10, and now its $3.00
    Loaf of bread was $.05, and now its $1.25
    Average home price was $4,000, and now its $200,00

    AA one-way coast-to-coast ticket was $155, and now its $146! (Just adjusting for inflation, this ticket price should be $2,475 today.)

  • http://www.tripso.com/author/elliott Christopher Elliott

    Truer words were never spoken.

    Re: second mortgage. If you believe what some of the experts are saying, then you might be forgiven for thinking so.

  • Frank

    Let’s DRIVE from New York City to Florida. That’s 1000 miles. If your car makes 25 miles per gallon at $4.00 per gallon. That’s 40 gallons x 25 miles= 1000 miles. 40 gallons at 4 costs $160 for the trip.

    THIS WEEK on Jetblue: $214.00 ONE WAY.
    Since you’re driving………….ADD another $50 BUCKS in ROAD TOLLS.

    Coast to Coast?……check travelocity, which the above itinerary.
    This week on Travelocity.com, we found one-way coast-to-coast American Airlines (JFK-LAX) tickets for less ($146)!

  • http://www.singleparenttravel.net John F

    Well JetBlue just made up for it by charging for pillows and blankies!

  • Frank

    On August 4th, 2008 at 11:41 pm John F said Well JetBlue just made up for it by charging for pillows and blankies!
    =====================================================

    Actually, NO, no they didnt. If you BOOK A FLIGHT the week of the 25 of Aug, AIR FARES, for THE ENTIRE WEEK are CHEAPER THEN DRIVING………..Try driving to florida for $89.00 to $114.00 dollars.

  • Joe

    Let’s DRIVE from New York City to Florida. That’s 1000 miles. If your car makes 25 miles per gallon at $4.00 per gallon. That’s 40 gallons x 25 miles= 1000 miles. 40 gallons at 4 costs $160 for the trip.

    THIS WEEK on Jetblue: $214.00 ONE WAY.
    Since you’re driving………….ADD another $50 BUCKS in ROAD TOLLS.
    ============================

    The math, however is completely different if it was a family of 4. The driving costs would be about the same (maybe a little more due to the extra weight). The flying costs, however, would be $214 x 4 = $856.

    And now it is a big difference.

  • Kevin Morgan

    One thing to consider in comparing travel costs, especially for a family-oriented tourism destination like Orlando, is that often you’re dealing with a family of three, four, or more traveling together.

    One ticket may be, say, $89 each way from New York to Orlando. With taxes and fees, let’s assume it rounds up to $100. So $200 round trip, times 4 for a family of four, is $800. Add in a rental car at $25/day for five days, since you’re driving, and that’s $925.

    On the other hand, that family (as documented above) could drive in a car that gets 25 mpg for a cost of $160 each way, or $320 round trip. No rental car needed since you’ve got your own. It’s a third the cost of flying. Even if you have to rent a car for the trip, it’s cheaper.

    For single travelers, airfare is often a bargain compared with driving, if it’s a long enough distance on a route where there’s competition. But if it’s a less-traveled route, with no competition, even then driving can be cheaper. From Baton Rouge to Dallas, for instance, is about 435 miles. Using the same calculations, it would take about 35 gallons, round trip. At $4/gallon, driving would be $140. Flying is about $200 with advance notice, plus whatever rental car costs.

    And of course, none of these calculations take into account the value of one’s time. There are times when I’ll gladly pay double the driving cost to fly, because I get to my destination quicker. There are other times when I can drive almost as fast as I could fly, once you factor in waiting time at airports, claiming luggage, renting a car, and driving from the airport into the city.

    There are a lot of factors affecting which way is cheapest – or most desirable.

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