No surprises as airfares increasing again
Not the first price spike
Fares were increased by United Air carriers recently, according to CBS. After that, JetBlue, Virgin and Southwest Airlines also all increased their base flight charges, according to USA Today. Delta, US Airways and American Airlines also all increased their prices. FareCompare.com explained that United Airlines raised its rates by $4 to $10 dependent upon the route. Every person seems to be increasing rates recently.
There have been seven tries to increase airfares this year, though this is just the fourth time it has stuck.
Not massive increase
When added up over the year, $4 and $10 ends up being a lot bigger than you might think. Fares increased nine times last year.
A lot of people will find that it is really not that bad since air carriers such as Southwest are not increasing charges on flights under 500 miles. A lot of people could save cash by traveling in the off-season too, which is fall since fewer people travel in the fall. Air carriers will cut ticket prices by 10 to 20 percent in the fall usually because it is so sluggish.
Some increased charges may come by means of airline fuel surcharges, though. According to the LA 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, regardless of 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.
Air carriers for America are a trade group for United States air carriers that explained fuel costs were only $3.00 per gallon in 2010. It really has not increased that much since now it is about $3.05 per gallon.
Slight amount of income
In spite of the fact that air carriers make billions of dollars off of extra fees such as baggage fees, you would be surprised to see how much those air carriers really take home after paying all of their own charges. The Huffington Post points out that airline fees are really decreasing right now, and fuel surcharges have to be disclosed under federal laws for ticket costs now.
If you want to be able to fly in the skies, you have to deal with the fuel costs. A 2010 CNN article explained that on average, a flight from Los Angeles to New York was, at the time, about $506.62, and only $33.34 of it was profit, or about 6.6 percent. About $200 goes into labor and fuel costs, $97.85 percent of which goes into fuel. The profit margin decreases to 4.8 percent with a 10 percent increase in fuel costs to $23.67.