Airfares Rising Again
If nothing else, one has to admire airlines for consistency, as a fresh round of airfares increasing has been documented. However, fuel prices are still extremely high.
Another round of price increasing
According to CBS, United Air carriers recently raised the base rate for airfares, adding $4 to $10, depending on the route, according to recent data from FareCompare.com. Airfare rising is the rule instead of the exception these days, and many other major companies followed suit. JetBlue, Virgin and Southwest Airlines easily raised their base charges soon after, according to USA Today. Joining them were Delta, American Air carriers and US Airways, according to CBS.
It was the fourth time that base airfares have risen this year. Overall, seven tries have been made to raise airfares, though only successfully three times before this latest raise.
Not all bad news
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 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 typically because it is so slow.
Fuel costs have only increased 24 percent since April 2011, but fuel surcharges have increased by 53 percent. A study by Cason Wagonlit Travel found that during the last few years, fuel charges have been going up substantially, according to the LA Times, which might add a fee to the trip you were not expecting.
Fuel costs are about $3.05 per gallon, compared to 2010 when it was $3.00 per gallon, according to Airlines for America.
Wishing for additional profits
Airlines really do not make that much on your air fares, and they have to disclose fuel surcharges to you now legally. The Huffington Post points out that airline charges are decreasing right now, and even though it seems like baggage charges and other extra fees bring the air carriers billions, you have to compare it to the charges airlines end up with.
For instance, according to a 2010 CNN article, a one-way flight from Los Angeles 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 may be high, but that’s the cost of being able to fly the friendly skies.
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