Friday, October 31, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

US airfares on the rise, outpacing inflation

By
August 06, 2014 |

NEW YORK — Travelers, prepare to pay more for your flight.

The average roundtrip ticket within the U.S., including taxes, reached $509.15 in the first six months of this year, up nearly $14 from the same period last year. Domestic airfare continues to outpace inflation, rising 2.7 percent compared to the 2.1 percent gain in the Consumer Price Index.

Airfare has gone up 10.7 percent in the past five years — after adjusting for inflation — according to an Associated Press analysis of data from the Airlines Reporting Corp., which processes ticket transactions for airlines and more than 9,400 travel agencies, including websites such as Expedia and Orbitz.

The formula for rising fares seems simple, but it eluded the airlines for years: Match the supply of seats to passenger demand.

“Airlines have reduced the number of seats while more people want to fly because of the economic recovery. All this leads to higher airfares,” says Chuck Thackston, managing director of data and analytics at Airlines Reporting Corp. “This trend in airfares is likely to continue for the near future, as the economy continues to grow.”

These days, fares only capture part of the cost of flying. Many passengers pay extra to check their luggage, typically $50 roundtrip for the first bag and $70 for the second one. But bag fees haven’t changed much in the past few years. Now, the airlines are increasingly enticing passengers to pay for fast-track security lines, early boarding, additional legroom and other extras that can add from $9 to $299 to the cost of a flight.

So, for example, a $300 ticket can balloon to $450 on some airlines if you check two bags and pay $30 for a little more room to stretch your legs.

And travelers aren’t finding much relief after landing. The average nightly price of a hotel room in the U.S. during the first half of this year was $113.80, according travel research company STR. That’s up $4.47, or 4 percent, from the same period in 2013.

Most people are traveling for work. And when the economy is strong, they do more flying. Data released by the government last week shows that economic growth bounced back after a brutal winter, businesses are creating jobs at a steady pace and consumer spending is on the rise.

The Global Business Travel Association predicts that worldwide business travel will grow 6.9 percent this year to a record $1.18 trillion. The United States is the business largest travel market, with travelers spending $274 billion last year, a 4.5-percent increase over 2012.

Baggage fees and some others were introduced in 2008 to offset losses from rising fuel prices. However, this year airlines are actually paying less for fuel — $2.96 a gallon so far, 7.2 percent less than last year, when adjusted for inflation.

Passengers aren’t seeing any of those savings. One reason is that airlines no longer need to entice fliers with lower fares. There are simply fewer choices today.

A wave of consolidation that started in 2008 has left four U.S. airlines — American Airlines, Delta Air Lines, Southwest Airlines and United Airlines — controlling more than 80 percent of the domestic air-travel market. Discount airlines such as Allegiant Air and Spirit Airlines have grown at breakneck speed but still carry a tiny fraction of overall passengers.

That control of the market has enabled the bigger airlines to charge more for tickets and not worry about being undercut by the competition. In addition, the airlines are taking in about $3.3 billion a year in fees. The result: record profits.

In April, May and June, the four largest U.S. airlines earned a combined $2.9 billion. Airlines are earning so much money that they are starting to pay investors dividends — something unheard of in an industry that just a decade ago was struggling with a wave of bankruptcies.

Airlines for America, the industry’s U.S. trade and lobbying group, says passengers should blame the government, not the carriers, for higher fares. Last month, increased fees linked to the Transportation Security Administration took effect. Fliers will now pay a flat fee of $5.60 each way, up from $2.50 each way for nonstop flights and $5 for trips with connections.

But taxes and government fees still remain a small portion of what passengers pay. On a $500 roundtrip ticket between New York and Seattle, they make up 12 percent of the price.

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

Dad finds passion creating set pieces for son’s shows

By Amy Maginnis-Honey | From Page: B1

 
Real estate agent pens, produces movie

By Amy Maginnis-Honey | From Page: B1

 
Neighborhood candy hunts of the past

By Tony Wade | From Page: A2

 
Candy from sky highlights North Texas Street event

By Ryan McCarthy | From Page: A3 | Gallery

 
Vintage Fair on tap at McBride Senior Center

By Amy Maginnis-Honey | From Page: A3

 
Fairfield police log: Oct. 29, 2014

By Susan Hiland | From Page: A12

Suisun City police log: Oct. 29, 2014

By Susan Hiland | From Page: A12

 
.

US / World

Judge approves Stockton’s bankruptcy plan

By The Associated Press | From Page: A1

 
California eyes $500 billion in water spending

By The Associated Press | From Page: A1

Marine wants new charges in Iraq war crime tossed

By The Associated Press | From Page: A3

 
Roseville officer accused of criminal threats

By The Associated Press | From Page: A3

Poll: Democrats leading in all statewide races

By The Associated Press | From Page: A4

 
Man charged with murder in SWAT officer shooting

By The Associated Press | From Page: A4

Teen arrested in threat at Sacramento school

By The Associated Press | From Page: A4

 
Police make arrest in slaying of Oakland mom

By The Associated Press | From Page: A4

Retrial in assault case over stray cat feeding

By The Associated Press | From Page: A4

 
Missing California hunter roasted bugs, lizards

By The Associated Press | From Page: A4

Pilot identified in California jet crash

By The Associated Press | From Page: A4

 
Lawsuit: Surgical gowns let diseases pass through

By The Associated Press | From Page: A5

Fearing Ebola? Doctors say get a flu shot

By The Associated Press | From Page: A5

 
Questions, answers about California’s Ebola policy

By The Associated Press | From Page: A5

Maine in standoff with nurse over Ebola safeguards

By The Associated Press | From Page: A5

 
Relatives suspected poisoning in family’s deaths

By The Associated Press | From Page: A6

Pair convicted in secret $1.6 M Navy silencer deal

By The Associated Press | From Page: A7

 
Guard troops sent to site of Hawaii lava flow

By The Associated Press | From Page: A7

Terminally ill woman may postpone taking her life

By The Associated Press | From Page: A7

 
Man’s own dog helps police bust him on drug charge

By The Associated Press | From Page: A7

Vatican admits Sistine Chapel frescoes ‘whitened’

By The Associated Press | From Page: A10 | Gallery

 
Israel closes Jerusalem holy site after shooting

By The Associated Press | From Page: A10

Fearing uprising, Iraq militants hunt ex-police

By The Associated Press | From Page: A10 | Gallery

 
Death penalty sought for trooper ambush suspect

By The Associated Press | From Page: A12

.

Opinion

Man’s prosecution unwarranted

By Letter to the Editor | From Page: A11

 
Are we safe now?

By Letter to the Editor | From Page: A11, 14 Comments

 
Editorial Cartoons: Oct. 31, 2014

By Daily Republic Syndicated Content | From Page: A11

Brown’s moderate stance resonates with voters

By Dan Walters | From Page: A11

 
 
.

Living

Community Calendar: Oct. 31, 2014

By Susan Hiland | From Page: A2

 
Today in History: Oct. 31, 2014

By The Associated Press | From Page: A2

My husband sends texts filled with ‘dirty talk’ to an old flame

By Kathy Mitchell and Marcy Sugar | From Page: A9

 
Horoscopes: Oct. 31, 2014

By Holiday Mathis | From Page: A9

.

Entertainment

Week in preview Oct. 31-Nov. 6, 2014

By Amy Maginnis-Honey | From Page: B1

 
Jorge Garcia makes the most of ‘Hawaii Five-O’

By The Associated Press | From Page: B1

Monica Potter wants to save her show ‘Parenthood’

By The Associated Press | From Page: B2

 
Review: Jake Gyllenhaal, tightly coiled and creepy

By The Associated Press | From Page: B2

Exhibit on Paul Simon’s life to debut at Rock Hall

By The Associated Press | From Page: B2

 
PBS touts 2013-14 ratings growth

By The Associated Press | From Page: B2

Reality TV show ‘Big Brother’ to debut in China

By The Associated Press | From Page: B2

 
‘The View’ now under ABC News as further revamping

By The Associated Press | From Page: B3

Review: ‘Sleep’ a decidedly average psych thriller

By The Associated Press | From Page: B3

 
Entertainment calendar Oct. 31, 2014

By Amy Maginnis-Honey | From Page: B4

Winter’s wife has blues listening to his new album

By The Associated Press | From Page: B5

 
Pulitzer Prize-winning poet Galway Kinnell dies

By The Associated Press | From Page: B6

TVGrid

By Daily Republic Syndicated Content | From Page: B6

 
.

Sports

 
 
Benicia fends off Vanden, 35-21

By Nick DeCicco | From Page: B7 | Gallery

New dynasty: Giants capture 3rd title in 5 years

By The Associated Press | From Page: B7 | Gallery

 
Bye week helps 49ers Vernon Davis’ recovery

By The Associated Press | From Page: B8

Sonoma Raceway to host IndyCar Series finale in 2015

By The Associated Press | From Page: B8

 
Warriors exercise options on Barnes, Ezeli

By The Associated Press | From Page: B8

Mack making impact for Raiders even without sacks

By The Associated Press | From Page: B8 | Gallery

 
This date in sports history for Friday, Oct. 31, 2014

By The Associated Press | From Page: B9

 
Prep football capsules: Week 9

By Paul Farmer | From Page: B10

.

Business

Not so sweet: Chocolate prices are set to rise

By The Associated Press | From Page: B11 | Gallery

 
Apple CEO publicly acknowledges that he’s gay

By The Associated Press | From Page: B11, 1 Comment | Gallery

FTC accuses Gerber of false claim on baby formula

By The Associated Press | From Page: B11

 
.

Obituaries

Oscar Lee Vezeau

By Susan Hiland | From Page: A4

 
Robert Louis Wright

By Nancy Green | From Page: A4

.

Comics

Peanuts

By Daily Republic Syndicated Content | From Page: A8

 
Baby Blues

By Daily Republic Syndicated Content | From Page: A8

Baldo

By Daily Republic Syndicated Content | From Page: A8

 
Blondie

By Daily Republic Syndicated Content | From Page: A8

Zits

By Daily Republic Syndicated Content | From Page: A8

 
Dilbert

By Daily Republic Syndicated Content | From Page: A8

Frank and Ernest

By Daily Republic Syndicated Content | From Page: A8

 
Sally Forth

By Daily Republic Syndicated Content | From Page: A8

B.C.

By Daily Republic Syndicated Content | From Page: A8

 
For Better or Worse

By Daily Republic Syndicated Content | From Page: A8

Pickles

By Daily Republic Syndicated Content | From Page: A8

 
Garfield

By Daily Republic Syndicated Content | From Page: A8

Beetle Bailey

By Daily Republic Syndicated Content | From Page: A8

 
Wizard of Id

By Daily Republic Syndicated Content | From Page: A8

Rose is Rose

By Daily Republic Syndicated Content | From Page: A8

 
Get Fuzzy

By Daily Republic Syndicated Content | From Page: A8

Word Sleuth

By Daily Republic Syndicated Content | From Page: A9

 
Bridge

By Daily Republic Syndicated Content | From Page: A9

Sudoku

By Daily Republic Syndicated Content | From Page: A9

 
Crossword

By Daily Republic Syndicated Content | From Page: A9