Average Fares Rose Four Percent From 2006
If you've flown commercially lately, you already know ticket
prices are a lot higher than they were one year ago... and on
Wednesday, the DOT's Bureau of Transportation Statistics released
figures to back that up. The government says average air fares in
the fourth quarter of 2007 were up 4.0 percent from the fourth
quarter of 2006 -- reaching the highest fourth-quarter level since
2001 but remaining 2.7 percent below the high set in 2000 for any
October-to-December period.
BTS added the average domestic itinerary fare in the fourth
quarter of 2007 of $331 was the highest average fare since the
second quarter of 2006. The fourth-quarter 2007 average fare was up
11.3 percent from the post-9/11 fourth-quarter low of $297 in
2004.
Average fares are based on domestic itinerary fares, round-trip
or one-way for which no return is purchased. Fares include taxes
and fees. Averages do not include frequent-flyer or "zero fares" or
a few abnormally high reported fares. BTS says average air fares in
the fourth quarter rose 1.0 percent from the third-quarter 2007
average of $328. Quarter-to-quarter changes may be affected by
seasonal factors.
Of the top 100 airports based on originating passengers, the
highest fourth-quarter average fares were in Anchorage, AK;
followed by Cincinnati, OH; San Francisco; Madison, WI; and
Knoxville, TN. The lowest fares in the top 100 airports were at
four Hawaii airports, followed by Dallas Love Field, home to
Southwest Airlines.
The largest year-to-year average fare increase for the fourth
quarter among the 100 largest airports, ranked by originating
passengers, was 16.2 percent in Houston, followed by Washington
Reagan; Boston; Washington Dulles, and Honolulu. The biggest
year-to-year average decrease was 18.5 percent in Charleston, SC,
followed by White Plains, NY; Wichita, KS; Memphis, TN; and
Columbus, OH.
A separate measure of fares, the BTS Air Travel Price Index
(ATPI) was up 4.1 percent from the fourth quarter of 2006 to the
fourth quarter of 2007, reaching the highest fourth-quarter level
recorded in the 13 years of the ATPI. The ATPI is up 6.4 percent
from its pre-9/11 fourth quarter high set in 2000 and up 16.1
percent from its post-9/11 fourth quarter low set in 2004.
ATPI is a statistical index that documents quarterly changes in
airline prices since the first quarter of 1995. The index measures
changes in airline ticket prices used on identical routings and
identical classes of service on a quarter-by-quarter basis. The
index can be used to compare airfares in the most recent available
quarter to any quarter since the base year of 1995.
The 4.1 percent rise in the ATPI from the fourth quarter of 2006
to the fourth quarter of 2007 was the third consecutive
year-to-year increase... and, alas, is a trend that shows no signs
of stopping, as airlines raise prices -- and add new charges for
previously covered items, such as for checking a second bag -- to
combat high fuel prices.