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.

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