If nothing else, one has to admire airlines for consistency, as a fresh round of airfares increasing has been reported. However, fuel costs are still extremely high.
Costs going up again
A ton of air carriers have increased base airfares by a great deal recently, starting with United Airlines. The airline company increased charges by $4 to $10 depending on the route, according to FareCompare.com. After that, JetBlue, Virgin and Southwest Air carriers also all raised their charges. Everybody seems to be interested in increasing fares now. It also increased at US Airways, American Air carriers and Delta.
This is the fourth time this year that airfare has increased. It is only the fourth time it has been successful though air carriers have tried to increase prices seven times this year.
Not too big
Fares increase nine times last year, which was a big deal. Even though $4 to $10 is not that big of a deal, it is big when added up over the year.
However, the news isn't really all bad. Some air carriers are only raising charges on longer routes, as Southwest is excluding flights under 500 miles. Not every person is going to feel the pinch though, as late August is usually when the slow season for air travel begins. Fewer people fly during fall and as a result, air carriers usually cut back. Airlines generally cut charges by 10 to 20 percent during the slow season, which might save some travelers some cash.
Some increased charges may come in the form of airline fuel surcharges, though. According to the Los Angeles Times, a study by Cason Wagonlit Travel found that fuel surcharges have not diminished across almost the entire industry over the past couple of years, despite fuel prices dropping at times. In fact, fuel surcharges have increased 53 percent since April 2011, though fuel costs increased only 24 percent in the same period.
Fuel prices are about $3.05 per gallon, compared to 2010 when it was $3.00 per gallon, according to Airlines for America.
Slight amount of income
Fuel surcharges, along with any ancillary fee, now have to be revealed under new federal guidelines for airline ticket prices. How much air carriers actually make per each fare is astonishingly less than one might think. One can find numerous reports on air carriers reaping billions in earnings, particularly from ancillary fees like baggage charges, but the outlays companies have to spend to get there could be incredible. Also, as the Huffington Post points out, airline charges are currently on the drop.
It could be ridiculously expensive to fly, but that does not mean the airline is making very much cash. For instance, one 2010 CNN article explained that a flight from LA to New York will cost about $506.62, $200 of which is put into labor and fuel. Fuel cost about $97.85. About $33.34 of the flight was profit, at 6.6 percent. If fuel increases by $23.67, or 10 percent, that margin decreases to 4.8 percent. It is almost not worth it, but someone has to do it.
Costs going up again
A ton of air carriers have increased base airfares by a great deal recently, starting with United Airlines. The airline company increased charges by $4 to $10 depending on the route, according to FareCompare.com. After that, JetBlue, Virgin and Southwest Air carriers also all raised their charges. Everybody seems to be interested in increasing fares now. It also increased at US Airways, American Air carriers and Delta.
This is the fourth time this year that airfare has increased. It is only the fourth time it has been successful though air carriers have tried to increase prices seven times this year.
Not too big
Fares increase nine times last year, which was a big deal. Even though $4 to $10 is not that big of a deal, it is big when added up over the year.
However, the news isn't really all bad. Some air carriers are only raising charges on longer routes, as Southwest is excluding flights under 500 miles. Not every person is going to feel the pinch though, as late August is usually when the slow season for air travel begins. Fewer people fly during fall and as a result, air carriers usually cut back. Airlines generally cut charges by 10 to 20 percent during the slow season, which might save some travelers some cash.
Some increased charges may come in the form of airline fuel surcharges, though. According to the Los Angeles Times, a study by Cason Wagonlit Travel found that fuel surcharges have not diminished across almost the entire industry over the past couple of years, despite fuel prices dropping at times. In fact, fuel surcharges have increased 53 percent since April 2011, though fuel costs increased only 24 percent in the same period.
Fuel prices are about $3.05 per gallon, compared to 2010 when it was $3.00 per gallon, according to Airlines for America.
Slight amount of income
Fuel surcharges, along with any ancillary fee, now have to be revealed under new federal guidelines for airline ticket prices. How much air carriers actually make per each fare is astonishingly less than one might think. One can find numerous reports on air carriers reaping billions in earnings, particularly from ancillary fees like baggage charges, but the outlays companies have to spend to get there could be incredible. Also, as the Huffington Post points out, airline charges are currently on the drop.
It could be ridiculously expensive to fly, but that does not mean the airline is making very much cash. For instance, one 2010 CNN article explained that a flight from LA to New York will cost about $506.62, $200 of which is put into labor and fuel. Fuel cost about $97.85. About $33.34 of the flight was profit, at 6.6 percent. If fuel increases by $23.67, or 10 percent, that margin decreases to 4.8 percent. It is almost not worth it, but someone has to do it.
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