Thu, Jun 19, 2003
International Uptick Encouraging to Industry
Although domestic airfares declined, both from April and as
compared to the prior May, international-flight airfares nudged
upward in May, according to the Air Transport Association.
Domestic fares were down 4.3% since last year's
May numbers, continuing an umbroken trend in 2003. International
fares, though, after seeing declines in March and April, again
started to rise, versus same-month 2002 numbers, rising 3.8%.
that good, or bad?
Whether these numbers translate into profits remains to be seen,
however. Fuel, labor, and "security" costs figure heavily into the
mix. Those, balanced against load factors (for both seats and
cargo), will tell more of the story.
What about consumers?
Fares aren't the only costs to consumers, though. The ATA notes,
"Depending on your itinerary, a substantial amount -- up to 50
percent -- of your ticket price includes taxes levied by local,
federal, or foreign governments. The stated purposes of the taxes
vary widely, including maintenance and enhancement of the nation's
airports and airways and funding for various federal agencies
(e.g., APHIS, Customs, INS, TSA)."
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