U.S. airfares touch record low, but is air travel less costly?

Saturday, February 23, 2019

As per Bureau of Transportation Statistics (BTS), U.S. airfares averaged U.S. dollars 343 in the third quarter of 2018, which was 0.4 per cent lower than that from a year earlier when adjusted for inflation. Bureau of Transportation Statistics began collecting airfare data in 1995.

The BTS said the average airfare in the third quarter combined both one-way and round-trip fares. One-way tickets, comprising 40 per cent of the total, had an average fare of U.S. dollars 249. Fares for round-trip tickets, which are the other 60 per cent, averaged at U.S. dollars 417.

As per BTS, airlines introduced ‘ancillary fees’. It refers to the surcharges airlines impose on services such as checking in luggage, on-board meals, assigned seating, or adequate legroom. According to IdeaWorks, an airline research and consulting firm, ancillary revenue in 2018 totalled estimated U.S. dollars 93 billion in 2018, up by 5 per cent from the previous year and up 311 per cent since 2010.

Travellers who do not carry extra bags and are comfortable with any seat might not be bothered with ancillary fees. For them air travel is cheaper. However, some opine that the costs of flying have simply been shuffled around.

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