Airfares Sinking Due To Lack Of Demand
The crappy economy is taking its toll on airfares. Demand is sinking taking airfares with it, says USAToday.
To assess the fare sales, FareCompare.com on Sunday analyzed airfares for the 25 most-traveled domestic routes in the continental USA.
On more than half the routes, non-stop coach tickets were available for travel on Dec. 10 for less than $220 round trip.
Prices were higher for travel closer to Christmas but still relatively inexpensive. For travel on Dec. 24 and returning five days later, for example, non-stop tickets were available on most routes for less than $270 round trip.
"Those holiday prices would have been double eight to 12 weeks ago," Seaney says.
Ray Neidl, an industry analyst for Calyon Securities, says passenger demand is "down sharply" because of the weak economy.
Just because fares are going down, however, doesn't mean you'll be saving any money. Many fares, while cheaper than they were a few months ago, are still higher than last year -- and the new airline fees appear to be here to stay.
A passenger with a $200 ticket may pay up to $80 more round trip for two checked bags — a 40% increase on what they paid a year ago, USAToday points out.
Economic woes push ticket demand down, airfares lower [USAToday]
(Photo: flyingember )
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I need help paying off my student loans. I think I'll ask for a bailout. Seems easier than actually paying off debts.
@homerjay- Smiling politely: "Oh, Delta, what's that perfume you're wearing?"
"It's the stench of desperation. I've been wearing it for years!"
Yeah, but fuel prices should be less than half for these airlines, unless they negotiated year-multi-year rates for fuel.
Lack of Demand due to FEE'S. Airlines are acting like the oil industry. They think they can get away with raising prices because its a "necessary commodity" for some, until they realize we all DO have a breaking point where we look and realize "Do we really need to visit out of state family every Thanksgiving/Christmas/other important dates".
I flew on Northwest yesterday and was not charged for my checked bag. The people on either side of me were, but the kiosk said my bag (40-lbs. rolling duffel) was $0 and the agent checked it through without asking for payment. So now I'm confused. I think I bought the ticket in March; if you purchased before the fee policy went into effect, is your bag grandfathered in for free or something? I had my credit card out to pay the $15 and it never happened.
@homerjay- Smiling politely: Ha, Ha, thats funny. Thats the first thing that came to my mind when I read this.
@ScubaSteveKzoo: Me too! I request a check for $100,000. This may be significantly more than the actual amount of my debt, but don't worry, I've got a business plan of how to spend it!
It's true, I've purchased two round-trip tickets in the past few weeks and they were both significantly cheaper than I was expecting. The airport was still pretty crowded last weekend, though. There were definitely plenty of people flying.
@yevarechecha: "So now I'm confused."
I was wondering the same thing so a while ago I called NWA to ask about the baggage policy and was told that tickets purchased prior to July 10 2008 (I'm not 100% sure on that ... I think it was the tenth) did not incur the $15 first bag fee.
Hope this helps...
@ViperBorg: I was about to say that with gas prices down significantly and airlines still charging those fees they promised us were only there because of high fuel prices, it's probably more cost-effective to drive.
@Jonbo298: +1.
I suggest we set up our relatives with a webcam. That way we can see 'em and hear 'em (of course, this assumes we actually want to see and hear 'em).
I'm glad my brother is only a 90-minute (or maybe 2 hours tomorrow) drive away and he & his wife are doing the cooking for the all of us. If I had to fly, I'd say, John, turn on the webcam and I'll am mine at our Butterball and you aim your webcam at your Butterball. See, isn't it great to spend time with one's family?
/end of family musings.
@nicemarmot617: Nah, they're delaying people at the gate to make the airport /look/ busy. Like papering the house at the theatre.
@nybiker: butterballs were too expensive this year. I had to get the store brand :-( I hope it turns out okay. /hijack
@thebluepill: I just heard on NPR that this is the case. Many companies are still paying outrageous fuel prices via contract that seemed like a good idea at the time. PS I just paid 1.63 per gallon of gas in my car! Woot!
Spend $500 to fly across half the country, or just make a phone call and say, Happy Thanksgiving!
Hmmm, hard decision, plus I hate my extended family.
Don't I already own airline stock since I paid taxes that went towards their last bailout? Oh wait, it doesn't work that way.
Soo....it has nothing to do with the drastic drop in fuel prices?
But it'll still cost you $400 extra if you check two bags and want a pillow and a soft drink.
bah, people still fly. The new fees are retarded but how are you going to get from one side of the country to the other? Or overseas? you fly duh so you are stuck with the airlines.
@Atticka:
Ha Ha. Fuel prices may have dropped for you and me, but like a bad dream , the dimwits at the airlines locked in the old , higher fuel prices earlier this year and won't see the real benefit of lower prices until their hedges expire sometime next year.Until then , they are still bleeding money out of every orifice because they tried their hand at oil speculatin'.I sure don't want a oil exec flying my plane . What makes them think that they know anything about petroleum ?
Plenty of options..
@Jonbo298:
Wait, lack of demand due to fee's WHAT? I mean it's fee's something, but you neglected to specify.
@TechnoDestructo: Ah, a grammar Nazi. You're correct, obviously, but is that really necessary? Let's just enjoy Thanksgiving and keep the correcting/snide remarks/conflict for where it belongs: with our in-laws tomorrow!
Lucky you. I'm trying to go Shanghai-Tokyo and it's insanely expensive.
@thebluepill: I don't think they've got buses or trains running across the ocean yet. And if you're planning to run across the atlantic, let me know so I can be there to watch.
I'm flying from Amsterdam to the US on Christmas day, it was the cheapest ticket I could find, especially since it was later in the day. Tickets for early flights on the same day were almost double when I booked two months ago!
I'll still be in time to spend Christmas evening with my boyfriend!
My husband and I signed up for a Course on how to pack for 3 weeks in Europe with one bag at the Boston Center for Adult Education. I hope it works and we master the art for our Italy trip in March because the fees really irk me!
@chiieddy:
I wonder if this course teaches you all the nuances about the "smell test."
Anyway, most airlines will let you check two free bags per person on international flights.
The crappy economy AND the the lousy air travel service in addition to the TSA harassment and their onerous fees for everything is what's killing demand. The feel-good security measures they employ don't increase safety considerably for what they cost and the number of people they inconvenience. We took a trip from Norfolk to Orlando earlier this month and opted to drive instead of being subjected to the cesspool that air travel has become.
Honestly, I check Southwest's prices before anybody else.
I'll pay no fees, I'd be glad to pay a few bucks more for a nonstop flight to where I have to go, versus sitting in some airport in jersey for hours trying to go west.
The "fee" game they are playing is penny wise and pound foolish. If I can't get a clear picture of my travel cost comparison, I will either rent a car and drive or opt with an airline that plays straight or not travel at all. They will just be back to screwing business travellers, and with the state of business lately - they'll all be flying their *private* jets to Washington begging for our tax bailouts.
Nice move, greedy airlines. Goodbye.
@Onion_Volcano: yes, because EVERYBODY NEEDS to travel cross country ALL THE TIME.
the few who dont need to, choose not to, and would have last year far outnumber those who actually NEED to.
but there certainly is not enough passenger traffic in the US right now to sustain all of the US carriers for an extended about of time, especially at the fuel prices United hedged on.
@Snarkysnake: SWell they actually DO need to do this because though you buy a ticket in say March and don't fly until October they have no idea what to charge for what the actual fuel cost will be. SWA has 17 consecutive years of profitability due to fuel hedges. Teh other airlines did not hedge with nearly the same gusto and guess what, they have filed for BK or started charging for bags etc. The hedgers are actually usually pretty good. BTW, jet fuel is not the same as filling up your car. I would also point out if the economy turns around fuel prices will again skyrocket
@thebluepill: Why are people so dense that they never factor in TIME. TIME IS MONEY. If I drove from Detroit to Florida it would require about 24 hours of driving if I went straight through. If I take a flight it would cost me about 4-5 hours of time. Lets pretend it took 10 hours, That is a 14 hour advantage. Flying is a value when you realize your time is worth something
@Justinh6: concur wholeheartedly. i flew southwest a month ago to FL for some family stuff and while the seating setup takes some getting used to, its worth to not be nickel-and-dime'd to death. plus, the flight crews were a riot; not your formal boring selves. i live not far from a central usair hub (charlotte) and while i had little complaints with their service i refuse to pay for their fee-laden service... so for the forseeable future its southwest for me!
@homerjay- Smiling politely: I think we already gave them $17B in loans/bailout money back in 2001 when they said the terrorist attacks would affect their bottom line... and then proceeded to lay off people by the hundreds, if not thousands.
@cjones27: Your right, we should use any spelling hear and if others cannot understand then its they're fault.
(couldn't resist)
@johnnya2:
True, Time is a huge Factor, and the reason I fly when going international a couple of times per month. Driving would take me 2 days, where a 3 hour flight becomes worth the money.
But, its the Sub 500 mile flights the become a gray zone.
Factor in 20min-1hour to get to the airport and get inside, potentally 1 hour to check bags or get tickets (if you dont e-ticket), 20min-1.5 hours in security.. Wait 30min-1 hour to board.. flight time up to 1.5 hours.. landing, departing the airport and getting transportation..
Realistically, even for a short hop flight, you are out 3-5 hours minimum, even 8 on a busy day or with delays.. Taking connections can even make it 12+ hours.. (yeah, Ive left work at 1pm for a 4pm international flight, with a connector, ive made it home several times at midnight.. and these were opimal flights..)
Traveling with more than 2 people, less than 500 miles.. flights start to loose their appeal rapidly, especially if its out of your pocket.
@johnnya2: thank u for pointing this out! my time is my life & thus worth considerable $$.
to me at least.
and having been on numerous family roadtrips - bring on the plane!
Demand's also going down because people don't want to deal with nickel-and-dimeing(sp?) airlines who are never on-time and haven't had good customer service since deregulation + the TSAholes. Get rid of those and I'd gladly fly more often, regardless of the price.
Did someone say BAILOUT???
Ugh... Probably.