Airfares dropping in time for holidays
Travelers, at least, are in for a happier holiday season. The price of airline tickets is dropping fast amid discount airfare wars between the major carriers. But those extra fees are likely to stay. Stacey Vanek-Smith reports.
Travelers try to beat the rush at the airport (iStockPhoto.com)
More on The Economy, Travel, America's Financial Crisis
TEXT OF STORY
Kai Ryssdal: When oil prices started shooting up a year and a half or so ago, airlines got hurt worse than most. And they passed a lot of that hurt on to us. With higher ticket prices and extra fees for everything from bags to blankets and pillows, going home for the holidays quickly became staying home for the holidays. But now that crude's dropped from its record high of $147 this past summer to plus or minus $60 today, you'd think travelers might get a break. And some of us are. Marketplace's Stacey Vanek-Smith reports.
Stacey Vanek-Smith: Last week, airlines rolled back many of those fuel surcharges they'd been tacking onto airfares. That means tickets will cost between $25 and $500 less. And travelers won't have to look too far to find the deals. David Field, editor of Airline Business Magazine, says they'll be in your inbox.
David Field: The Internet has made it possible for carriers to micro-target their promotions rather than just running a big ad.
But Field says don't expect the fare wars of Christmases past.
Field: You'll see ads saying 40 percent off, 60 percent off. But 60 percent of a fare that's already 20 or 30 or 40 percent higher than it was a year ago, isn't as good a deal. The days of the $99 fare from New York to California are gone.
Lower fuel prices are giving airlines a break, but the industry still faces turbulence says aviation analyst Richard Aboulafia. He says business and international travel are way down. And, he says, airline profits have been hammered over the past few years.
Richard Aboulafia: The good news is that the fuel cost reduction is like winning the lottery for the airlines. The bad news is that the lottery ticket winner was heavily in debt.
That means passengers will probably have to keep paying fees for checked bags and blankets says Airline Business Magazine's David Field.
Field: Fees are very much like diamonds -- they're forever.
Field says the airlines have become addicted to fees because they let carriers keep fares low and still add to the bottom line.
I'm Stacey Vanek-Smith for Marketplace.
Comments
Comment | Refresh
Post a Comment: Please be civil, brief and relevant.
Email addresses are never displayed, but they are required to confirm your comments. All comments are moderated. Marketplace reserves the right to edit any comments on this site and to read them on the air if they are extra-interesting. Please read the Comment Guidelines before posting.
You must be 13 or over to submit information to American Public Media. The information entered into this form will not be used to send unsolicited email and will not be sold to a third party. For more information see Terms and Conditions and Privacy Policy.