When's Airfare going to come down?

[ibj40]

Crude oil is trading down around the $50/barrel mark, and gasoline prices are half what they were six months ago; but . . .

We've been checking air to a variety of locations, on a couple of different airlines, and they're not budging.

What's the deal?

 

[scubamarketing]

Airlines use fuel costs to raise prices. Aside from the random promo, you're unlikely to see them lower prices as costs go down. One easy way to help profits over time.

 

[KathyV]

Crude oil is trading down around the $50/barrel mark, and gasoline prices are half what they were six months ago; but . . .We've been checking air to a variety of locations, on a couple of different airlines, and they're not budging. What's the deal?

I read that the airlines are still paying the old high prices for fuel because they had previously signed purchasing contracts with the suppliers.

 

[Doc]

What's the deal?

I'd complain, Mr. Seinfeld.



Hows 'bout one of them on-line petitions?

 

[Wookie]

Why would airfare come down? Poor airlines are struggling to make a profit what with no one checking bags. Don't you feel bad for them?

 

[Lorenzoid]

Do you wish to deny them "record profits"?

Airlines Profit Records Seen Prolonged on Oil Price Drop - Bloomberg

It's been so many years since we heard anything but "airlines continue to struggle"--maybe as far back as 9/11/01--that we've forgotten they're SUPPOSED to be profitable. From a consumer's point of view, airfares may be higher than they have been in the past decade or so, but they're still lower than pre-deregulation. The fares I've been watching recently, ATL-CUN, seem reasonable to me at $350-$400.

 

[DKL]

Airlines are just like the stinking government. Once they raise the price on some product or service, they will never bring the price down just pocket the profits or waste it on some social welfare scheme. As a matter of fact since the price of gas has gone down there are some politicians trying to raise the cost of tax on a gallon of fuel.

 

[DeputyDan]

Air fare was way to cheap for way too long. Of course that is their fault but to answer the question - IT AIN"T GOING TO HAPPEN SOON!

 

[drbill]

About 15 years ago I flew to about a dozen different countries in the North and south Pacific on a 3 month dive trip. Total airfare for the entire trip was $1,600. Today I spend that to go to a single destination. Of course I also remember a trip to Europe in 1968 when RT airfare was about $225 (with open bar and food).