Saturday, December 13, 2014
According to Newsday, December 11, 2014, airfare prices are anticipated to drop in 2015. The plummeting oil prices should impact airfares soon. Since airlines have had to charge more and more the past few years because of the higher oil pricing, it will be a welcome respite for travelers. The International Air Transport Association said consumers are likely to see a fall in travel costs soon. Won’t that be fabulous for frequent travelers! If you are like me, and always planning your next trip and destination, it will be a pleasure to reap the benefits of lower fares, and it cannot happen soon enough. According to the U.S. Transportation Department, airfare for domestic travel climbed in the U.S. this year, 4.8% from the same period last year. And you remember, we had an 8.3% increase in fares from 2011 and another 8.3% from 2010.

Rick Seaney, CEO of the travel website FareCompare, thinks we may see 10-20% reduction in fares. Travelers will be dancing in the streets. Others predict lower fares of between 5-10%. Fuel is the largest operating expense for the airlines, accounting for approximately two fifths of their total costs. Since American production of crude oil has prices down about 40% this year, we are very likely to see lower airline fares and specials in the coming year. We will certainly be happy to see price reductions wherever we’re planning to go!

Conde Nast noted on that they only expect fares to decrease about 5%. The International Air Transport Associates agrees that passengers will only a see 5% decrease. Many of the airlines are stuck with contracts for fuel that pre-date the crude oil current lower prices. The airlines may increase their specials and lower prices for certain routes and days. No matter what the discounts will be, we’ll keep a lookout for lower airline fares and certainly welcome them!