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, 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 )