<\/p>\n

Bad news: Airfares prices are going up, and they’re likely going to stay that way until scientists finally crack the code of cold fusion. The LA Times<\/em> recently took a look at some of the factors behind the rise in prices<\/a>, and the news is grim for those hoping the increase is simply a blip. It seems three main factors are at play here.<\/p>\n

1) Fuel<\/strong><\/p>\n

Fuel prices are going up due to a recovering world economy, and unless a new financial crisis resulting in another great recession is around the corner, don’t expect fuel prices to drop anytime soon.<\/p>\n

2) Fewer Seats<\/strong><\/p>\n

It’s simple supply and demand. As the airliners were hammered during the economic turndown, they raced to end plane leases and increase capacity per plane. Now, flights are averaging 85% capacity, meaning they have less need to drop prices to fill seats.<\/p>\n

3) Merger Madness!<\/strong><\/p>\n

Back to our old friend Adam Smith. Six major airliners have combined into three even more major airliners over the last few years (United\/Continental, AirTran\/Southwest, Northwest\/Delta), which has resulted in less competition, fewer seats, more price control, soggier sandwiches, more in-flight Adam Sandler movies and other bad news for budget-conscious fliers.<\/p>\n

*<\/p>\n

The good news in all of this is that international fares seem to be holding steady. Credit a weaker international economy (particularly in Europe) and markedly more competition outside the U.S. for this good fortune. One more reason to head out of the country next trip.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bad news: Airfares prices are going up, and they’re likely going to stay that way until scientists finally crack the code of cold fusion. The LA Times recently took a look at some of the factors behind the rise in prices, and the news is grim for those hoping the increase is simply a blip. […]<\/p>\n","protected":false},"author":1,"featured_media":13361,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2561],"tags":[],"yoast_head":"\n