airfare Archives - Inflation Watch https://inflationwatch.drduru.com/tag/airfare/ Watching for inflation here, there and everywhere Tue, 14 Sep 2010 10:02:27 +0000 en-US hourly 1 https://wordpress.org/?v=7.1.4 https://i0.wp.com/inflationwatch.drduru.com/wp-content/uploads/2025/07/cropped-new-hp-money-printing-plates.png-1.webp?fit=32%2C32&ssl=1 airfare Archives - Inflation Watch https://inflationwatch.drduru.com/tag/airfare/ 32 32 246324047 Airfares in the United Kingdom Surge At A Record Pace https://inflationwatch.drduru.com/airfares-in-united-kingdom-surge/?utm_source=rss&utm_medium=rss&utm_campaign=airfares-in-united-kingdom-surge Tue, 14 Sep 2010 10:02:27 +0000 http://inflationwatch.wordpress.com/?p=1258 It looks like American flyers are not the only ones paying higher fares. Across the Atlantic, air passengers in the United Kingdom paid 16.1% more to fly in August than in July, a record seasonal increase. This dour news was part of the U.K.’s latest inflation report that showed consumer price inflation above the government’s […]

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]]> It looks like American flyers are not the only ones paying higher fares. Across the Atlantic, air passengers in the United Kingdom paid 16.1% more to fly in August than in July, a record seasonal increase. This dour news was part of the U.K.’s latest inflation report that showed consumer price inflation above the government’s 3% limit for a sixth month in a row. The core rate of inflation was up 2.8%, higher than the 2.5% consensus forecast. Maybe we can export some of our deflationary fears to help out the cause.

See “U.K. Inflation Unexpectedly Exceeds 3% on Air Fares, Food” for more details.

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]]> 1258 Airfares Near Pre-Recession Levels https://inflationwatch.drduru.com/airfares-nea-pre-recession-levels/?utm_source=rss&utm_medium=rss&utm_campaign=airfares-nea-pre-recession-levels Sun, 05 Sep 2010 17:10:13 +0000 http://inflationwatch.wordpress.com/?p=1251 Airlines are making money again thanks to the pricing power that has come from an economic recovery and reductions in overall capacity. The improved pricing has allowed airlines to charge for an array of services that were once free. In addition, domestic leisure airfares have increased 20% year-over-year from the second quarter, international fares are […]

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]]> Airlines are making money again thanks to the pricing power that has come from an economic recovery and reductions in overall capacity. The improved pricing has allowed airlines to charge for an array of services that were once free. In addition, domestic leisure airfares have increased 20% year-over-year from the second quarter, international fares are up 30%, and business travelers are paying 12% more. Another metric, the price paid per passenger per mile, is only 3.9% off the 15.56 cents from July, 2008 which was the highest for the past 10 years.

All these price increases have translated into seven straight months of revenue growth and major airlines are generating impressive profits. For example, Delta made $467M last quarter; its best quarterly showing in a decade. These results mark a sharp rebound from the decade-low prices at the depths of the recession and from the extremely high oil prices that squeezed airlines before that.

For more details see “After Bargains of Recession, Air Fares Soar” in the New York Times (September 5, 2010).

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