Price drop: airfare continues to decline

Фото: Depositphotos

The average price for domestic flights fell to $363 in the fourth quarter of 2015, the lowest level since 2010. This is reported by the US Department of Transportation.

The annual decline in ticket prices reached 8,3%. The main reason is cheap oil, the price of which fell to $2015 per barrel in the last months of 33,98.

CheapAir.com CEO Jeff Klee explained that the price of airfare and oil prices are not directly related.

Cheap oil increases airline profits, “allowing them to grow, add new routes and buy better planes.”

Loukosterov, such as Spirit Airlines (SAVE) and Allegiant Air (ALGT) expand the geography of their flights, thereby creating competition for existing airlines. Competition leads to lower ticket prices.

In addition, airlines buy more economical aircraft, which also affects the reduction in flight costs.

"They're retiring, these gas guzzlers," said George Hobike, founder of Airfarewatchdog.com. He noted that some new planes consume 20% less fuel than older models.

Now luckies can be called those who fly to Chicago, Dallas and Philadelphia. They buy tickets at the lowest prices in the country. This contributes to great competition in these cities.

Previously ForumDaily писалhow to find the cheapest airfare this summer.

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