In the past couple of years, rarely is it ever the case that airfares are decreasing. Charges and higher costs of fuel make traveling a more costly proposal yearly. A brand new round of airfares rising has just been reported, as the air carriers are at least consistent.
Fourth round of airfares increasing this year
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 rates, according to USA Today. Delta, US Airways and American Air carriers also all increased their charges. FareCompare.com explained that United Air carriers elevated its charges by $4 to $10 dependent upon the route. Everyone appears to be increasing rates recently.
This is the fourth time this year that airfare has increased. It is only the fourth time it has been successful though air carriers have tried to increase charges seven times this year.
Could possibly be worse
When added up over the year, $4 and $10 ends up being a lot bigger than you may think. Fares increased nine times last year.
Airlines will typically cut back in the fall by reducing charges by 10 to 20 percent during this low season. Some travelers could save some cash if they go during that time. That is good news for a lot of people who have time to travel in the fall. Southwest is not increasing charges unless the flight is over 500 miles, so it might actually be good news for a lot of people.
Sometimes, a fee is added to the trip that you were not expecting, according to the LA Times, such as airline fuel surcharges. Since April 2011, surcharges have increased 53 percent despite the fact that fuel has only increased by 24 percent, according to a study by Cason Wagonlit Travel that showed just how much fuel surcharges are increasing.
However, Airlines for America, the trade group for key air companies in the United States, notes fuel prices are roughly $3.05 per gallon, compared to $3.00 per gallon in 2010.
Slim margins
In spite of the fact that airlines make billions of dollars off of additional charges such as baggage charges, you would be amazed to see how much those air carriers really take home after paying all of their own fees. The Huffington Post points out that airline charges are actually decreasing right now, and fuel surcharges have to be disclosed under federal laws for ticket prices now.
It could be ridiculously expensive to fly, but that does not mean the airline is making very much cash. For instance, one 2010 CNN article explained that a flight from LA to New York will cost about $506.62, $200 of which is put into labor and fuel. Fuel cost about $97.85. About $33.34 of the flight was profit, at 6.6 percent. If fuel increases by $23.67, or 10 percent, that margin decreases to 4.8 percent. It is almost not worth it, but someone has to do it.
Fourth round of airfares increasing this year
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 rates, according to USA Today. Delta, US Airways and American Air carriers also all increased their charges. FareCompare.com explained that United Air carriers elevated its charges by $4 to $10 dependent upon the route. Everyone appears to be increasing rates recently.
This is the fourth time this year that airfare has increased. It is only the fourth time it has been successful though air carriers have tried to increase charges seven times this year.
Could possibly be worse
When added up over the year, $4 and $10 ends up being a lot bigger than you may think. Fares increased nine times last year.
Airlines will typically cut back in the fall by reducing charges by 10 to 20 percent during this low season. Some travelers could save some cash if they go during that time. That is good news for a lot of people who have time to travel in the fall. Southwest is not increasing charges unless the flight is over 500 miles, so it might actually be good news for a lot of people.
Sometimes, a fee is added to the trip that you were not expecting, according to the LA Times, such as airline fuel surcharges. Since April 2011, surcharges have increased 53 percent despite the fact that fuel has only increased by 24 percent, according to a study by Cason Wagonlit Travel that showed just how much fuel surcharges are increasing.
However, Airlines for America, the trade group for key air companies in the United States, notes fuel prices are roughly $3.05 per gallon, compared to $3.00 per gallon in 2010.
Slim margins
In spite of the fact that airlines make billions of dollars off of additional charges such as baggage charges, you would be amazed to see how much those air carriers really take home after paying all of their own fees. The Huffington Post points out that airline charges are actually decreasing right now, and fuel surcharges have to be disclosed under federal laws for ticket prices now.
It could be ridiculously expensive to fly, but that does not mean the airline is making very much cash. For instance, one 2010 CNN article explained that a flight from LA to New York will cost about $506.62, $200 of which is put into labor and fuel. Fuel cost about $97.85. About $33.34 of the flight was profit, at 6.6 percent. If fuel increases by $23.67, or 10 percent, that margin decreases to 4.8 percent. It is almost not worth it, but someone has to do it.
No comments:
Post a Comment