In the past couple of years, rarely is it ever the case that airfares are decreasing. Charges and higher costs of fuel make flying a more expensive proposal annually. A new round of airfares increasing has just been documented, as the air carriers are at least consistent.
Fourth round of airfares rising this year
A lot of airlines have increased base airfares by a great deal recently, starting with United Air carriers. The airline business increased prices by $4 to $10 dependent upon the route, according to FareCompare.com. After that, JetBlue, Virgin and Southwest Airlines also all raised their rates. Everybody is apparently interested in increasing fares now. It also increased at US Airways, American Air carriers and Delta.
There have been seven attempts to increase airfares this year, though this is just the fourth time it has stuck.
Not enormous 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.
However, the news isn't really all bad. Some air carriers are only raising charges on longer routes, as Southwest is excluding flights under 500 miles. Not everyone is going to feel the pinch though, as late August is generally when the sluggish season for air travel begins. Fewer people fly during fall and as a result, air carriers typically cut back. Air carriers typically cut rates by 10 to 20 percent during the slow season, which might save some travelers some cash.
Some increased fees may come in the form of airline fuel surcharges, though. According to the Los Angeles Times, a study by Cason Wagonlit Travel found that fuel surcharges haven't 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.
Airlines for America are a trade group for United States air carriers 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.
Profits not that high
Fuel surcharges, along with any other ancillary fee, now have to be revealed under new federal guidelines for airline ticket costs. How much airlines actually make per each fare is astonishingly less than one might think. One can find numerous reports on airlines reaping billions in profits, particularly from ancillary charges like baggage fees, but the outlays carriers have to spend to get there could be incredible. Also, as the Huffington Post points out, airline charges are currently on the decline.
If you need 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.
Fourth round of airfares rising this year
A lot of airlines have increased base airfares by a great deal recently, starting with United Air carriers. The airline business increased prices by $4 to $10 dependent upon the route, according to FareCompare.com. After that, JetBlue, Virgin and Southwest Airlines also all raised their rates. Everybody is apparently interested in increasing fares now. It also increased at US Airways, American Air carriers and Delta.
There have been seven attempts to increase airfares this year, though this is just the fourth time it has stuck.
Not enormous 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.
However, the news isn't really all bad. Some air carriers are only raising charges on longer routes, as Southwest is excluding flights under 500 miles. Not everyone is going to feel the pinch though, as late August is generally when the sluggish season for air travel begins. Fewer people fly during fall and as a result, air carriers typically cut back. Air carriers typically cut rates by 10 to 20 percent during the slow season, which might save some travelers some cash.
Some increased fees may come in the form of airline fuel surcharges, though. According to the Los Angeles Times, a study by Cason Wagonlit Travel found that fuel surcharges haven't 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.
Airlines for America are a trade group for United States air carriers 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.
Profits not that high
Fuel surcharges, along with any other ancillary fee, now have to be revealed under new federal guidelines for airline ticket costs. How much airlines actually make per each fare is astonishingly less than one might think. One can find numerous reports on airlines reaping billions in profits, particularly from ancillary charges like baggage fees, but the outlays carriers have to spend to get there could be incredible. Also, as the Huffington Post points out, airline charges are currently on the decline.
If you need 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.