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Airfares rising again

Started by fayewilson, 2013-09-21 07:48

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fayewilson

Air carriers charge a lot in fees and usually do not lower airfare charges very often, which many air travelers aren't pleased about. Airfare rising is a fact of life and several key companies have certainly been raising airfares again lately. Article resource: Airfare Rising Again


Not the first price spike



Fares were increased by United Air carriers recently, according to CBS. After that, JetBlue, Virgin and Southwest Air carriers also all increased their base flight prices, according to USA Today. Delta, US Airways and American Air carriers also all increased their charges. FareCompare.com explained that United Airlines elevated its rates by $4 to $10 dependent upon the route. Everyone seems to be increasing prices recently.


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


Increase not that bad


When added up over the year, $4 and $10 ends up being a lot bigger than you might think. Fares increased nine times last year.


Many people will find that it is actually not that bad since air carriers such as Southwest are not increasing rates on flights under 500 miles. Some people could save cash by flying 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 usually because it is so sluggish.


Some increased fees may come in the form of airline fuel surcharges, though. According to the LA Times, a study by Cason Wagonlit Travel found that fuel surcharges have not diminished across almost the entire industry over the past few years, regardless of fuel costs dropping at times. In fact, fuel surcharges have increased 53 percent since April 2011, though fuel costs increased only 24 percent in the same period.


However, Air carriers for America, the trade group for major air carriers in the United States, notes fuel costs are roughly $3.05 per gallon, compared to $3.00 per gallon in 2010.


Not making as much as you think


Fuel surcharges, along with any ancillary fee, now have to be disclosed under new federal guidelines for airline ticket costs. How much air carriers really make per each fare is surprisingly less than one might think. One can find numerous reports on air carriers reaping billions in profits, specifically from ancillary charges like baggage fees, but the outlays carriers have to spend to get there can be incredible. Also, as the Huffington Post points out, airline charges are currently on the drop.


For instance, according to a 2010 CNN article, a one-way flight from LA to New York cost $506.62, on average, at the time of that article's writing. Of that $506.62, just $33.34 was profit, roughly 6.6 percent. Almost $200 of that goes to labor and fuel, fuel accounting for the largest portion, at $97.85. A 10 percent increase in fuel costs boosts those costs to $23.67, a margin of roughly 4.8 percent. Prices can be high, but that's the cost of being able to fly the friendly skies.


fayewilson


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