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<ul class="summary-list"><li><keyword id="11898285" type="UNKNOWN" weightage="60" keywordseo="airlines" source="Orion">Airlines</keyword> are bracing for a fall <keyword id="11896628" type="UNKNOWN" weightage="60" keywordseo="travel" source="Orion">travel</keyword> season with fewer business travelers after a lucrative summer.</li><li>Airfares from September to November are expected to be lower than normal as a result.</li><li>But holiday travel will likely be priced similarly to last year's levels as leisure demand rebounds.</li></ul>Travelers who missed the bargain basement pricing of pandemic airfares have another opportunity to get deals on flights this fall.As the summer comes to a close and leisure travelers hibernate for the fall, airlines are facing a shortage of business travelers that would normally help fill the gap until the Thanksgiving or Christmas travel season. Big corporate spenders including <a href="https://www.wsj.com/articles/google-delays-voluntary-return-to-office-until-jan-10-11630430176?mod=article_inline">Google are still keeping employees at home</a> and largely holding off on expending travel budgets as the <a href="https://www.businessinsider.com/delta-covid-cases-peaking-in-us-more-outbreaks-likely-2021-9">Delta variant plagues the US</a>.Airfares this season, as a result, are expected to be lower than fall 2019 levels as airlines entice leisure flyers to get back in the air during their off-season.September may be the cheapest season of the fall, according to the travel data company Hopper. Airfares are estimated to drop 10% into September with the average round-trip flight costing $260 for domestic travel.Holiday travel may not be as good of a bargain this year, however, as Hopper expects airfares to rise 11% from September levels into December. Average round-trip airfares are expected to be $289 as a result."This would make domestic airfare over the holiday season equivalent to summer airfare, similar to what we saw in 2019 and 2020," Hopper told Insider. <a href="https://africa.businessinsider.com/travel/sunday-saw-the-most-travelers-pass-through-us-airports-since-the-pandemic-began-as/kb7jp2f">Holiday travel spiked in 2020</a> despite pleas from public health officials about a second wave, with airlines likely estimating similar demand this year.Travelers looking to head overseas can also expect to spend less on airfare this fall. Hopper estimates September to November airfares will be 15% lower than fall 2019 levels and the average round-trip will be $734.International round-trips in the fall of 2020, for comparison, averaged $717. Those prices are still lower than the fall 2019 levels when the average airfare was $859 round-trip.September is also expected to be the cheapest month for international travel of the fall season months. Hopper expects September airfares to be 8% lower than July levels for an average airfare of $700 round-trip.Travelers may not see deals as good as those in 2020 but cheap airfares can still be had until the winter holiday travel rush.United Airlines showed just how low airfares can be with $113 round-trip fares between New York City and Los Angeles from late September to November, quickly matched by JetBlue Airways. Even more budget-minded passengers can also find round trips on Spirit Airlines on the same route for under $100.United, American Airlines, and Hawaiian Airlines are also selling round-trip flights between Los Angeles and Maui, Hawaii for as low as $168. The cheap flights, however, signal just how bad the fall will be for airlines with fewer business customers. <a href="https://www.businessinsider.com/flying-on-united-airlines-premium-new-york-california-route-review-2021-5">United's New York-Los Angeles route</a> will be served by a narrow-body Boeing 757 aircraft instead of the <a href="https://www.businessinsider.com/united-airlines-returns-to-jfk-airport-premium-west-coast-service-2021-3">premium-configured Boeing 767 aircraft that kicked off the route in March</a>, presumably because business class seats are harder to sell when corporations aren't footing the bill.Business travel bookings, however, have been trending upward through the summer and spiked in the week leading up to Labor Day Weekend, according to TripActions data, which the company calls "an encouraging start" to business travel's recovery.This fall will be the first since the start of the pandemic when domestic travelers will also not have to worry about regional travel restrictions. Vaccinated travelers have also been given a <a href="https://www.businessinsider.com/cdc-fully-vaccinated-travelers-can-now-travel-in-the-us-2021-4">green light by the Centers for Disease Control and Prevention to travel within the US</a>.Unvaccinated travelers, however, are <a href="https://www.cdc.gov/coronavirus/2019-ncov/travelers/travel-during-covid19.html">advised by the CDC to take additional measures</a> including getting tested before and after traveling, as well as self-quarantining for seven to 10 days after traveling.

Airfare is set to drop this fall and airlines have already started testing cheap pricing on expensive routes

<ul class="summary-list"><li>Higher <keyword id="12098766" type="UNKNOWN" weightage="60" keywordseo="fuel-prices" source="Orion">fuel prices</keyword> and strong demand increased <keyword id="12354044" type="UNKNOWN" weightage="60" keywordseo="airfare" source="Orion">airfare</keyword> by 20% in March compared to the same time in 2019.</li><li>Online spending for domestic flights soared to $8.8 billion in March — 28% higher than pre-pandemic levels.</li></ul>Travelers may feel a dent in their wallets this year as higher fuel prices and strong demand drive up airfare.On Tuesday, the <a href="https://business.adobe.com/blog/the-latest/adobe-digital-economy-index-prices-for-domestic-flights-jump-20-percent-compared-to-pre-pandemic-levels">Adobe Digital Economy Index</a> published data revealing travelers spent $8.8 billion for online flight bookings in March, which is a 28% increase compared to the same time in 2019. While spending was up, bookings themselves were actually only 12% higher than in March 2019, the data showed. Moreover, in the first quarter of 2022, consumers spent a whopping $21 billion on domestic airfare. To put that number into perspective, passengers spent $56 billion total in all of 2021, according to <keyword id="11893675" type="UNKNOWN" weightage="60" keywordseo="adobe" source="Orion">Adobe</keyword>.Rising <keyword id="12574386" type="UNKNOWN" weightage="60" keywordseo="ticket-prices" source="Orion">ticket prices</keyword> can be attributed to spiking <keyword id="11896628" type="UNKNOWN" weightage="60" keywordseo="travel" source="Orion">travel</keyword> demand and <keyword id="12574383" type="UNKNOWN" weightage="60" keywordseo="fuel-costs" source="Orion">fuel costs</keyword>. The price of jet fuel, which is the second-biggest expense for airlines behind labor, has been rising since the Russia-Ukraine crisis disrupted the global distribution of crude oil.<a href="https://ycharts.com/indicators/gulf_coast_jet_fuel_spot_price#:~:text=US%20Gulf%20Coast%20Kerosene%2DType%20Jet%20Fuel%20Spot%20Price%20is,134.7%25%20from%20one%20year%20ago.">US Gulf Coast data</a> shows jet fuel settling at $3.343 per gallon on April 11. The price is about 35% higher than the beginning of 2022, which saw a fuel price of $2.195 per gallon on January 3, and double the price during the same time last year.Fuel prices have contributed to staggering inflation, which this year is growing at its fastest pace since 1981, <a href="https://www.bls.gov/news.release/cpi.nr0.htm">according to a US Labor Department report released Tuesday</a>. The inflation in airfare led to a 20% increase in prices in March 2022 compared to March 2019, according to Adobe data. For comparison, the data showed airfare increased by 5% in February and actually decreased by 3% in January.Meanwhile, data from travel app <a href="https://media.hopper.com/research/consumer-airfare-index-report-march-2022">Hopper</a> shows a 40% rise in airfare since the start of 2022, with an average domestic roundtrip ticket costing $330. The company predicts ticket costs will increase by another 10% in May.Typically, changes will be reflected in airfare over the next few months, but Hopper explained that the "extent to which it appears can vary depending on airlines' hedging programs and how much of the cost is passed through to the consumer." However, it is possible airlines will absorb some of those costs, the company said.Hedging is a strategy that some carriers, <a href="https://southwest50.com/our-stories/the-southwest-jet-fuel-hedge-strategy/#:~:text=Southwest%20had%20decided%20to%20hedge,quarters%20of%20the%20previous%20year.">like Southwest Airlines</a>, use to ensure they are not hurt by unexpected increases in jet fuel prices, like the spike that was brought on by the war in Ukraine. The company agrees to buy fuel months or years in advance at a set rate, allowing it to offset the increasing costs.<a href="https://www.axios.com/local/atlanta/2022/03/15/southwest-airlines-rising-fuel-costs-fuel-hedging">According to media outlet Axios Atlanta</a>, Southwest has hedged about 64% of fuel for the remainder of 2022, while rival American Airlines stopped hedging in 2014.Although consumers may be put off by the higher ticket prices, they are more willing than ever to shell out more for flights after two years of travel restrictions, <a href="https://www.cnbc.com/2022/04/12/airfare-surged-20percent-over-pre-pandemic-levels-as-inflation-hit-vacations.html">CNBC reported</a>. <keyword id="11947683" type="UNKNOWN" weightage="60" keywordseo="delta-air-lines" source="Orion">Delta Air Lines</keyword> CEO Ed Bastian <a href="https://apnews.com/article/covid-health-business-ed-bastian-inflation-a7e7b7dee42b4219d1073023ff8bf0b9">told the Associated Press</a> that bookings have not been deterred by the pandemic or inflation, saying "the last five weeks have been the highest bookings in our history." The company lost $940 million in the first quarter of 2022, mostly due to rising fuel prices.He also said that travel demand will remain strong enough over the next two to three months to allow Delta to cover the higher fuel cost, the AP reported.Adobe Digital Insights lead analyst Vivek Pandya explained the strong travel demand is driving inflation. "The unleash of pent-up demand has been a major driving factor, as the desire for air travel is coming back more aggressively than anticipated," Pandya said.

Why airfare is so high in 2022

<ul class="summary-list"><li><keyword id="12354044" type="UNKNOWN" weightage="60" keywordseo="airfare" source="Orion">Airfare</keyword> is increasing as the holidays draw nearer, with <keyword id="12574386" type="UNKNOWN" weightage="60" keywordseo="ticket-prices" source="Orion">ticket prices</keyword> up 55% over Christmas compared to 2020.</li><li>Airfare tracking app <keyword id="12574382" type="UNKNOWN" weightage="60" keywordseo="hopper" source="Orion">Hopper</keyword> says <keyword id="11896628" type="UNKNOWN" weightage="60" keywordseo="travel" source="Orion">travel</keyword>ers should book their Christmas travel no later than Thanksgiving.</li></ul>The holiday season is here again and after nearly two years of the COVID-19 pandemic, people are eager to see loved ones in person again, but it won't be cheap.During the pandemic, <keyword id="11898285" type="UNKNOWN" weightage="60" keywordseo="airlines" source="Orion">airlines</keyword> were desperate to fill planes and offered highly discounted fares to entice people to travel despite ongoing restrictions and the risk of the virus. However, now that <a href="https://www.insider.com/my-5-year-old-already-scheduled-for-his-covid-vaccine-2021-11">vaccination rates</a> are up and the <a href="https://www.businessinsider.com/what-to-know-about-the-us-lifting-its-covid-travel-ban-2021-11">US border is open</a>, <keyword id="6358993" type="UNKNOWN" weightage="60" keywordseo="demand" source="Orion">demand</keyword> has skyrocketed, and so have ticket prices.Hopper, an airfare tracking app, published its yearly <a href="https://media.hopper.com/research/2021-holiday-travel-guide-report">Holiday Travel Guide</a> to give travelers an idea of what to expect in terms of ticket prices over Thanksgiving and Christmas. According to the company, domestic airfare this Thanksgiving is an average of $300 roundtrip, up 23% from 2020, though still 11% below 2019 levels. Christmas travel will burn an even bigger hole in travelers' wallets this year. Hopper revealed domestic airfare around the holiday is $390, which is 55% higher than 2020 and on par with 2019. Atlanta-resident Candace Driver complained on <a href="https://twitter.com/Vershered/status/1459246505219563524">Twitter</a> about rising airfare. She told Insider she flies home to California every year for Christmas, but fares were double what she paid for three people in 2020."It was $1200 for tickets home this year. Last year we got out of here for around $600," she said. Insider also spoke with <a href="https://twitter.com/small_tex/status/1461156946577289216">Twitter</a> user Bailey Bond who said she spent hours looking for a cheaper flight from Portland to Texas after prices soared to $900. She ended up paying $800 for one ticket."Every year for Christmas we have spent about $360 per person for round trip flights to Texas," she said. "What we usually spend getting two of us home round trip wouldn't even buy 1 person a round trip ticket this year."With the stark increase in airfare from the previous year, airlines are likely anticipating a stronger Christmas travel period compared to Thanksgiving, according to Hopper. So, for travelers who have not yet bought their tickets, this could put a dent in the budget, but it is not too late to avoid the biggest price spikes.Hopper suggests travelers should buy their flights by Thanksgiving at the latest because airfare will continue to increase as Christmas gets closer. The company expects domestic ticket prices to rise 7% to $460 by December 11, and another 11% to $510 in the week leading up to the holiday. Rising airfare is a result of two main factors: increased demand and rising fuel prices, experts say. <a href="https://blog.adobe.com/en/publish/2021/11/11/adobe-digital-economy-index-thanksgiving-flight-bookings-exceeding-2019-levels#gs.gy1azv">An Adobe report</a> revealed bookings are 3.2% higher than 2019 and up 78% compared to 2020. Meanwhile, <a href="https://www.cnbc.com/2021/11/15/airlines-are-gearing-up-for-a-busier-and-costlier-holiday-season-as-fuel-prices-rise.html">according to CNBC</a>, fuel is up 63% compared to the same time in 2020, and airlines are preparing to take a hit because of it. In their respective earnings calls for Q3, CEOs for both Delta Air Lines and Frontier Airlines said the rising costs would impact their Q4 bottom line.Moreover, United Airlines CEO Scott Kirby told CNBC in an interview that fuel prices directly impact airfare."Jet fuel prices go up usually because demand is strong, and that's going to be true again," Kirby said. "Right now supply is still swamping demand, but ultimately, higher jet fuel prices lead to higher ticket prices."Henry Harteveldt, president and travel industry analyst of Atmosphere Research Group, echoed industry executives."Rising <keyword id="12574383" type="UNKNOWN" weightage="60" keywordseo="fuel-costs" source="Orion">fuel costs</keyword> are going to play the role of Scrooge to anyone hoping to find an inexpensive flight for the Christmas holiday," he told Insider.

Airline ticket prices for this holiday season are skyrocketing

<div class="image-container float_right" style="width:480px"><div class="image"><a href="http://www.flickr.com/photos/24300714@N04/8715690177/">Flickr/carpathiar</a>Long Beach Airport has the cheapest average <keyword id="6367662" type="UNKNOWN" weightage="60" keywordseo="flights">flights</keyword> in the US.</div></div>Flying is expensive, but you could save a lot of money just by booking a flight into an alternate airport.
In Los Angeles? Instead of flying out of LAX (where an average flight costs $465), you may want to book a flight out of Long Beach Airport (LGB), where the average <keyword id="48448" type="UNKNOWN" weightage="60" keywordseo="Airfare">airfare</keyword> costs just $216.
Cheapflights.com just released their fourth annual <a href="http://www.cheapflights.com/travel/101-airports-ranked-on-affordability-2013/">Airport Affordability Index,</a> which ranks popular airports with the most affordable round-trip airfares, including tax.
California's Long Beach Airport (Daugherty Field; LGB) has the cheapest flights, with an average fare of just $216. <a href="http://www.businessinsider.com/the-cheapest-airports-2012-8">Last year, LGB came in at the number two spot</a>. South Carolina's Myrtle Beach Jetport (MYR) jumped to the number two spot (last year it was #42) with an average airfare of $249, and California's Fresno Air Terminal (FAT) came in at #3 with an average airfare of $270.
At the bottom of the list was Honolulu International Airport (HNL), with an average airfare of $689. Other airports in the bottom 10 were Washington Dulles International (IAD), Miami International (MIA), and New York's JFK International.
The findings show that geography doesn't necessarily determine affordability. Instead, alternative airports in close proximity to large cities or outside of major metro areas tended to offer the cheapest flights. But keep in mind that a cheap airfare often means an indirect flight with several layovers. 
Here are the top 10 cheapest airports: 
<table border="2">
<tbody>
<tr>
<td>Rank</td>
<td>Airport</td>
<td>Avg. Airfare</td>
<td>2012 Ranking</td>
</tr>
<tr>
<td>1</td>
<td>Long Beach (Daugherty Field), CA (LGB)</td>
<td>$216</td>
<td>2</td>
</tr>
<tr>
<td>2</td>
<td>Myrtle Beach Jetport, SC (MYR)</td>
<td>$249</td>
<td>42</td>
</tr>
<tr>
<td>3</td>
<td>Fresno Air Terminal, CA (FAT)</td>
<td>$270</td>
<td>3</td>
</tr>
<tr>
<td>4</td>
<td>Burlington International, VT (BTV)</td>
<td>$284</td>
<td>28</td>
</tr>
<tr>
<td>5</td>
<td>Metropolitan Oakland International, CA (OAK)</td>
<td>$287</td>
<td>8</td>
</tr>
<tr>
<td>6</td>
<td>La Guardia, NY (LGA)</td>
<td>$290</td>
<td>23</td>
</tr>
<tr>
<td>7</td>
<td>Harrisburg International, PA (MDT)</td>
<td>$291</td>
<td>4</td>
</tr>
<tr>
<td>8</td>
<td>White Plains, NY (HPN)</td>
<td>$295</td>
<td>7</td>
</tr>
<tr>
<td>9</td>
<td>Bob Hope Airport, CA (BUR)</td>
<td>$297</td>
<td>1</td>
</tr>
<tr>
<td>10</td>
<td>Akron-Canton Regional, OH (CAK)</td>
<td>$303</td>
<td>11</td>
</tr>
</tbody>
</table>
 
And here are the 10 most expensive airports: 
<table border="2">
<tbody>
<tr>
<td>Rank</td>
<td>Airport</td>
<td>Avg Airfare</td>
<td>2012 Ranking</td>
</tr>
<tr>
<td>92</td>
<td>Albuquerque International, NM (ABQ)</td>
<td>$559</td>
<td>40</td>
</tr>
<tr>
<td>93</td>
<td>Newark International, NJ (EWR)</td>
<td>$566</td>
<td>68</td>
</tr>
<tr>
<td>94</td>
<td>Charlotte/Douglas International, NC (CLT)</td>
<td>$571</td>
<td>48</td>
</tr>
<tr>
<td>95</td>
<td>John F. Kennedy International, NY (JFK)</td>
<td>$580</td>
<td>97</td>
</tr>
<tr>
<td>96</td>
<td>Standiford Field, KY (SDF)</td>
<td>$587</td>
<td>54</td>
</tr>
<tr>
<td>97</td>
<td>Salt Lake City International, UT (SLC)</td>
<td>$589</td>
<td>84</td>
</tr>
<tr>
<td>98</td>
<td>Southwest Florida International, FL (RSW)</td>
<td>$603</td>
<td>47</td>
</tr>
<tr>
<td>99</td>
<td>Miami International, FL (MIA)</td>
<td>$618</td>
<td>78</td>
</tr>
<tr>
<td>100</td>
<td>Washington Dulles International (IAD)</td>
<td>$652</td>
<td>95</td>
</tr>
<tr>
<td>101</td>
<td>Honolulu International, HI (HNL)</td>
<td>$689</td>
<td>100</td>
</tr>
</tbody>
</table>

The US Airports With The Cheapest Average Airfares

<a href="http://www.businessinsider.in/Government-to-soon-address-predatory-pricing-by-airlines/articleshow/48700303.cms">Airlines</a> have a habit of <a href="http://www.businessinsider.in/searchresult.cms?query=airfares">inflating airfares</a> during festive season to rake in more moolah. But this is not going well with the passengers, who have put this issue to <a href="http://www.businessinsider.in/searchresult.cms?query=prime+minister+narendra+modi">PM Narendra Modi</a>. 
 
Modi received a representation that airfares were high during the Onam festival, which is celebrated in Kerala. At that time, many Keralites, who are working in the Gulf nations, come home to meet their families and are forced to shell out high prices of air tickets. 
 
The prime minister expressed concern over steep rise in airfares during festive seasons and has asked whether there is a way to handle the issue. 
 
In this regard, the ministry has started looking for various options to address the issue, also noting that regulating airfares would not be a way out. 
 
Last week, <a href="http://www.businessinsider.in/searchresult.cms?query=aviation+ministry">Civil Aviation Ministry</a> had said the issue of predatory pricing was a concern of a majority of Parliamentarians and as well as the Prime minister, adding carriers need to reduce fares and not hike them particularly when it comes to emergency travel like in medical emergency. 
 
As per Sharma, a mechanism can also be there through the <a href="http://www.businessinsider.in/searchresult.cms?query=DGCA">Directorate General of Civil Aviation</a> (<keyword id="6354787" type="ORGANIZATION" weightage="80" keywordseo="DGCA">DGCA</keyword>) or through national carrier Air India to deal with the issue. 
 
(Image: Reuters)

Be careful when you increase airfares during festive season. PM Modi is watching

<keyword id="6358032" type="General" weightage="100" keywordseo="spicejet" source="Orion">SpiceJet</keyword> CEO <keyword id="6357826" type="General" weightage="80" keywordseo="ajay-singh" source="Orion">Ajay Singh</keyword> on Thursday said there is a need for "more rational airfares" in the country even as he tried to assuage concerns of a hike in airfares as a consequence of competitor Go First filing for voluntary insolvency by terming it a "temporary phenomena". He termed the Go First development as "extremely unfortunate" and expressed hope that the airline can use this opportunity to resolve their issues. Asked about concerns on hike in airfares as a consequence of competitor Go First filing for voluntary insolvency, the SpiceJet chief said: "Those are temporary phenomena". "Of course when there is a mismatch of supply and demand, airfares will go up but this settles quite nicely as you would have seen the last time an airline went down there was a temporary period of mismatch and the capacity came into the system and fares were back to normal," Singh said. He further said that while the era of low airfares has helped in boosting air travel in this country, sometimes it has also led to difficulties for airlines as is evident for all to see. He observed that more rational airfares are required in the country and hoped that the fares will be more rational in the times to come. Speaking to reporters on the sidelines of an Assocham event, Singh, who is also the President of the industry body, said it was "Not at all likely" that the aviation sector will be affected by one airline going down. "You will see that the number as on April 30, we had 4,50,000 people who travelled by air, that was a record number. At no time in the past has <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword> seen such a record number of people travelling by air and you will see the numbers bounce back really really quickly," he said. Asked how he looks at the development in the aviation sector (of an airline going down), he said: "It is of course extremely unfortunate but hopefully Go First can use this opportunity to resolve their issues and the sector at large can use this opportunity to resolve their issues and emerge even stronger". On SpiceJet's plan to add 25 aircraft to its fleet, he said: "During <keyword id="8764262" type="General" weightage="50" keywordseo="covid" source="Orion">Covid</keyword>, several of our aircraft had gone down and with increase in demand, we want to revive all those aircraft and there are so many small stations that have been left unconnected or less connected as a consequence of the problems that occurred during Covid. We hope to bring back all those flights and increase frequency to several destinations around the world". Budget carrier SpiceJet on Wednesday said it is working to revive 25 grounded planes and has so far mobilised Rs 400 crore for revival of these aircraft. The announcement came a day after competitor Go First filed for voluntary insolvency resolution proceedings and decided to cancel flights for three days starting May 3. In a statement, SpiceJet said funds for the revival of the 25 aircraft will be drawn from the government's Emergency <keyword id="9331772" type="General" weightage="50" keywordseo="credit-line-guarantee-scheme" source="Orion">Credit Line Guarantee Scheme</keyword> (ECLGS) and better cash accruals. The airline has around 80 planes in its fleet and is looking to revive 25 grounded Boeing 737 and Q400 aircraft. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/ajay-banga-as-world-bank-president-adds-to-success-stories-of-the-indian-americans-usispf/articleshow/99984193.cms">Ajay Banga as World Bank President adds to success stories of the Indian Americans: USISPF</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/arcelormittal-q1-net-income-falls-over-73-to-usd-1096-mn/articleshow/99983996.cms">ArcelorMittal Q1 net income falls over 73% to USD 1,096 mn</a>

Rise in airfares due to Go First's bankruptcy is temporary says SpiceJet CEO

There will be no cap on air ticket prices from August 31, and airlines will have flexibility in fixing the airfares. However, experts said that high competition among the airlines may lead to benefits for fliers and many airlines may offer discounts as per the demands. Aviation expert <keyword id="8783" type="General" weightage="80" keywordseo="harshvardhan" source="Orion">Harshvardhan</keyword> said: "The move will give flexibility to the airlines in deciding air fares and airlines can charge as per their policies. Airfare cap was more towards the higher side. New airline has come and there is competition in the sector. To attract travelers, some airlines are likely to come up with offers." An industry source said that airlines will have freedom to decide on air ticket prices, according to the prevailing market situations. They may raise prices during festive season as higher fares will add to the margins, he said. Earlier, the <keyword id="58151" type="General" weightage="80" keywordseo="civil-aviation-ministry" source="Orion">Civil Aviation Ministry</keyword> had said that after review of the current status of <keyword id="14865698" type="General" weightage="80" keywordseo="scheduled-domestic-operations" source="Orion">Scheduled Domestic Operations</keyword> vis-a-vis passenger demand for air travel, it has been decided to remove the fare bands notified from time to time regarding the airfares with effect from August 31. The ministry had imposed lower and upper limits on airfares after the resumption of services in May 2020 following the initial two-month nationwide lockdown to contain the spread of Covid-19. Thereafter, the limits were relaxed in a phased manner according to the improvement in air traffic in the country. The lower caps were meant as a relief for airlines struggling after the Covid-19 pandemic. At the same time, the upper caps on airfares were fixed to ensure that passengers do not have to pay a hefty amount for air travel. Earlier, discussions on removing the fare bands for domestic airfares were held among the stakeholders including the government authorities and airlines. Carriers were of the view that removal of the pricing caps is required for the full-fledged recovery of domestic air traffic. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/this-multi-cap-fund-has-survived-the-worst-market-cycles-and-yet-delivered-the-highest-returns/articleshow/93914048.cms">This multi-cap fund has survived the worst market cycles and yet delivered the highest returns</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/warren-buffett-sells-47-mn-worth-stake-in-chinese-ev-firm-byd/articleshow/93902458.cms">Warren Buffett sells $47 mn worth stake in Chinese EV firm BYD</a>

Airfares may get costlier this festive season as there's no cap ticket prices from now

Ahead of the festive season, the airfare from <keyword id="66" type="General" weightage="80" keywordseo="delhi" source="Orion">Delhi</keyword>, <keyword id="6358070" type="General" weightage="50" keywordseo="mumbai" source="Orion">Mumbai</keyword> and Kolkata to <keyword id="6358805" type="General" weightage="100" keywordseo="patna" source="Orion">Patna</keyword> has registered a more than three-fold rise over the off-peak season rates. The price of the Delhi to Patna flight on October 22 was Rs 14,000 while the airfare from Mumbai to Patna reached Rs 20,000. The current fare from these two places to Patna is more than the rate from Delhi to Sharjah, which is Rs 11,000. Delhi to Bangkok's current ticket costs Rs 10,500, and Delhi to Singapore is priced at Rs 13,000. The air ticket from Kolkata to Patna was hiked to Rs 10,500. The airline companies during the peak season were taking advantage of the flexible fare. The experts believe that the spike may continue. The air tickets from other cities like Hyderabad, Chennai, Bengaluru, Chandigarh, Jaipur, Ahmedabad, Surat and others have also increased. One of the biggest reasons for the spikes in airfare is the unavailability of train tickets. The waiting lists for trains are very high and even <keyword id="56937" type="General" weightage="50" keywordseo="tatkal" source="Orion">Tatkal</keyword> tickets are not available. Meanwhile, Northern Railway has decided to run 32 additional mail and express trains bound for Patna, Muzaffarpur, Darbhanga, <keyword id="2634001" type="General" weightage="50" keywordseo="jay-nagar" source="Orion">Jay Nagar</keyword>, Kishanganj, Katihar, and Barauni (Begusarai) to provide some relief to the passengers. The officials are claiming to run a total of 211 trains till Chatth Puja. The trains will start from Jammu, Amritsar, Ferozepur, Delhi, Bhiwani and Pathankot. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/maggi-maker-nestl-indias-net-profit-grows-8-3-to-668-crore-in-q2/articleshow/94960866.cms">Maggi maker Nestlé India’s net profit grows 8.3% to ₹668 crore in Q2</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/rupee-gains-6-paise-to-82-34-against-us-dollar/articleshow/94960998.cms">Rupee gains 6 paise to 82.34 against US dollar</a>

Three-fold rise in airfares to Patna from Delhi, Mumbai and Kolkata ahead of festivals

<ul class="summary-list"><li>As travel demand collapsed during the first few months of the pandemic, so did the price to fly.</li><li>The average <keyword id="48448" type="PERSON" weightage="60" keywordseo="Airfare">airfare</keyword> for domestic flights fell 26%, according to data from the DOT and processed by <keyword id="10141458" type="UNKNOWN" weightage="60" keywordseo="cirium">Cirium</keyword>.</li><li>The data underscores <keyword id="44023" type="ORGANIZATION" weightage="60" keywordseo="airlines">airlines</keyword>' plight — the sliver of demand they've been able to get has less value than in the past, doubling the blow.</li></ul>As the <keyword id="8763838" type="UNKNOWN" weightage="60" keywordseo="covid-19">COVID-19</keyword> pandemic grounded many would-be flyers earlier this year, airlines didn't just have plummeting demand to contend with. Compounding their financial pain was a staggering collapse in pricing power.As shown by <a href="https://www.businessinsider.com/us-exceeds-million-daily-air-travelers-airlines-2020-10">TSA data</a> in the US, travel demand sank at the beginning of the second quarter before making some modest gains in late spring. As demand sank, so did prices. Airfares for domestic flights in the second quarter dropped an average of 26% from the previous year, according to data from the <keyword id="518169" type="ORGANIZATION" weightage="60" keywordseo="Department-of-Transportation">Department of Transportation</keyword>, released on a three-month delay and processed by airline analytics firm Cirium. That reduction came as travel demand fell as much as 97% over 2019 levels, before gradually improving to be down about 75%.<div type="image" title="Cirium DOT Airfare Chart" height="464" width="887" msid="78775348" hostid="261"></div>The drops were most pronounced at Hawaiian Airlines, where prices were down 47% as the island state effectively closed itself to outsiders, and at Allegiant, which lowered fares 36% as it moved aggressively to capture demand on specific routes where possible.Fares were slashed at the majors as well. Average domestic fares at American Airlines were down 26%, while Delta cut fares 14%. United had one of the smallest reductions, down just 10% over 2019, while Southwest slashed fares by 25%.Modern airfare is determined by a complex and highly secretive set of pricing algorithms, combined with input and adjustments from human managers in airlines' revenue-management departments. With travel demand falling as much as it did, price cuts were expected — a classic supply-and-demand dynamic — even as airlines grounded planes to cut capacity.That compounded the challenges for airlines as they worked to implement new, costly cleaning measures onboard, while simultaneously reducing costs and seeking revenue wherever possible. The few tickets airlines did sell went for prices well below 2019 levels, another blow to airlines' revenues.Notably, some markets were hit harder than others. The average price of flights into New York City fell 14%, while flights to and from Florida were down 29%.Data for the entire second quarter is only just becoming available due to the DOT's three-month statistics delay, but data for the third quarter will be especially insightful when released. Ticket pricing is one of the few variables that airlines can fully control, and is an obvious lever to pull when trying to attract passengers. As airlines tried unsuccessfully to drum up demand for leisure travel over the summer — hampered largely by COVID-19 case spikes and new travel restrictions in late June and early July — a comparison of pricing and actual demand will provide clues as to how much airlines can expect demand to actually recover before the pandemic is completely under control.

New data shows how US airfares plunged alongside demand early in the pandemic, dealing airlines a double blow

No-frills carrier <keyword id="11252024" type="General" weightage="20" keywordseo="go-first" source="Orion">Go First</keyword> filing for insolvency proceedings and cancelling flights is bad for the airline industry as the move will reduce capacity and could push <keyword id="6375796" type="General" weightage="20" keywordseo="airfares" source="Orion">airfares</keyword> in certain routes, <keyword id="6354692" type="General" weightage="20" keywordseo="travel" source="Orion">travel</keyword> agents' grouping <keyword id="196742" type="General" weightage="20" keywordseo="taai" source="Orion">TAAI</keyword> said on Wednesday. Bogged down by an acute financial crunch due to the grounding of more than half of its fleet amid P&amp;W engine supply woes, Go First has cancelled flights for three days starting May 3. Besides, the Wadia group-owned airline has filed for voluntary insolvency resolution proceedings under the Insolvency and Bankruptcy Code (IBC). "It is bad for the (airlines) industry... It is such a fragile industry... we lost crores of rupees in Kingfisher Airlines, in Jet Airways and we have another one going into insolvency (proceedings)," Travel Agents Association of India (TAAI) President Jyoti Mayal told PTI. The developments at Go First, which has been flying for more than 17 years, also come at a time when domestic air traffic is on an upward trajectory. Mayal said that right now there is demand for air travel as it is holiday time and "we do expect fares going up in sectors it (Go First) was flying. In the coming weeks, fares are likely to go up." Regarding booked tickets, she said it is the company that has to provide refunds and if it goes into insolvency, the rules are different. "Those are the challenges we are going to be facing". TAAI has around 2,800 members. In the summer schedule which is on from March 26 to October 28, Go First is to operate 1,538 flights per week. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/go-first-impact-market-capitalisation-of-3-psu-banks-down-by-7500-crore-as-investors-fret-over-their-exposure-to-ailing-airline/articleshow/99953433.cms">Go First Impact: Market capitalisation of 3 PSU Banks down by ₹7,500 crore as investors fret over their exposure to ailing airline</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/govt-is-positive-centre-to-sc-on-social-benefits-for-same-sex-couples/articleshow/99954180.cms">'Govt is positive', Centre to SC on social benefits for same-sex couples</a>

Airfares likely to rise as Go First cancellations reduce capacity says travel agents body

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Scandinavian Airlines SASScandinavian Airlines passengers.</div></div></div><ul><li><a href="http://www.businessinsider.com/category/scandinavian-airlines" target="_blank" rel="noopener">Scandinavian Airlines</a> (SAS) announced that it is offering free base airfare to children between the ages of two and 11. Infants up to 24 months are eligible as well. </li><li>The deal covers flights between the US and the Nordic countries of Sweden, Denmark, Norway, and Finland.</li><li>The <a href="http://www.businessinsider.com/category/airlines" target="_blank" rel="noopener">airline</a> offers only free base airfare which means passengers will still have to pay the taxes and fee associated with the flights. </li></ul>Kids fly free on<a href="http://www.businessinsider.com/scandinavian-airline-sas-ceo-2016-3" target="_blank" rel="noopener"> Scandinavian Airlines (SAS)</a>. Well, sort of. On Tuesday, SAS announced that it is offering free base airfare for children flying between the US and its home base in Northern Europe.The fare sale covers children between the ages of two and 11 as well as infants up to 24 months old. Tickets will be available from May 1 through May 13, 2018, for <keyword id="6354692" type="UNKNOWN" weightage="60" keywordseo="Travel">travel</keyword> between August 20 and March 30, 2019.The airline will make the deal available for travel in both its SAS Go economy cabin and SAS Plus premium economy cabin. <div class="KonaFilter image-container display-table"><div><div class="image on-image">SASA Scandinavian Airlines Airbus A340-300.</div></div></div>However, there's some fine print associated with the fare sale. First, unaccompanied minor tickets do not qualify for this fare sale. In addition, flights between December 20 and January 8 are exempt from the deal. SAS also stipulates that all travel has to be completed by March 31, 2019. Further, the promotion covers only the base airfare. This means travelers will still have to pay the taxes and the fees associated with the trans-Atlantic flight. In many instances, the taxes and fees are much higher than the actual airfare.So the flight isn't really free. However, it's still a good deal and at the least a sizable discount on what can be a pricey ticket. Scandinavian Airlines operates a flight between the US and the Nordic countries of Denmark, Sweden, Norway, and Finland. The airline's US bases include Boston (BOS), Newark (EWR), Miami (MIA), Washington D.C. (IAD), Chicago (ORD), San Francisco (SFO), and Los Angeles (LAX). <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/stocks-drop-on-10-year-yield-but-earnings-growth-steadies-2018-4">Here's what is keeping stocks from completely crashing with the 10-year above 3%</a></h3> <div> </div> </div>

One airline is offering free airfare for kids flying between the US and Europe - but there's catch

<ul class="summary-list"><li>Adjusting for inflation, airfares are much more affordable than they were nearly 30 years ago. </li><li>But plenty of Americans remain frustrated by flight prices. </li></ul>The last time you bought a plane ticket, you probably got a better deal than you realized. That's because, believe it or not, <a target="_blank" href="https://www.businessinsider.com/why-air-travel-is-so-cheap-2019-11">airfares are much more affordable</a> than they were three decades ago.In 1995, the average US <a target="_blank" href="https://www.businessinsider.com/us-flights-cheaper-domestic-summer-travel-tickets-best-deals-2023-5">domestic airfare</a> was $292 — excluding optional fees, like ones related to baggage — according to the Bureau of Transportation Statistics. In 2023, the average fare was <a target="_blank" href="https://www.bts.gov/content/annual-us-domestic-average-itinerary-fare-current-and-constant-dollars">$382</a>, up over 30% from 1995. However, the story changes dramatically when adjusting for inflation. In 2023 dollars, the average airfare fell from $584 to $382 between 1995 and 2023, a nearly 35% decline.It means that flying, like the prices of <a target="_blank" href="https://www.businessinsider.com/make-college-housing-healthcare-childcare-more-affordable-abundance-agenda-2023-1">televisions and toys</a>, is <a target="_blank" href="https://www.businessinsider.com/cost-of-flying-has-decreased-2015-10">much more affordable</a> than it used to be. But if you <a target="_blank" href="https://www.marketwatch.com/guides/insurance-services/holiday-air-travel-outlook-survey/">ask some Americans</a>, airfares have <a target="_blank" href="https://www.bankrate.com/personal-finance/travel-inflation-statistics/">gotten out of control</a> in recent years."There's little doubt in my mind that people think airfare is at historic highs and getting more expensive," Scott Keyes, an airline industry expert and the founder of travel-membership service <a target="_blank" href="http://Going.com">Going.com</a>, told Business Insider via email. "We are living in the golden age of cheap flights, but few people recognize it."Additionally, Mike Daher, a transportation expert at Deloitte, said in a <a target="_blank" href="https://www.prnewswire.com/news-releases/deloitte-summer-travel-stays-the-course-amid-pricing-pressures-302150815.html">report</a> published in May that there's "a perception that airfares and room rates are high, and some Americans are sitting out travel this summer as they look for softer pricing."It's not just domestic flights that have gotten more affordable. Keyes said international inflation-adjusted airfares for US passengers <a target="_blank" href="https://fred.stlouisfed.org/graph/?g=1oxmN">have</a> also generally <a target="_blank" href="https://fred.stlouisfed.org/graph/?g=1oxn3">fallen</a> over the past decade.Frustrations over flying costs could be among the reasons the share of Americans with a negative opinion of the airline industry is at the highest level since 2011, according to a Gallup <a target="_blank" href="https://news.gallup.com/poll/1579/airlines.aspx#:~:text=In%202023%2C%2035%25%20of%20Americans,had%20an%20overall%20negative%20view.">survey</a> of over 1,000 US adults conducted last August. The federal government seems to have taken notice. In January, a federal judge blocked the <a target="_blank" href="https://markets.businessinsider.com/news/stocks/spirit-airlines-stock-price-jet-blue-merger-judge-doj-antitrust-2024-1">JetBlue-Spirit Airlines merger</a> after the Biden Administration raised concerns about the impact it would have on flight prices. In April, the Department of Transportation <a target="_blank" href="https://www.businessinsider.com/airlines-sue-biden-administration-dot-fee-transparency-baggage-change-seat-2024-5">announced a rule</a> it said would protect consumers from "surprise junk fees" — such as the costs of additional baggage and reservation changes — and save fliers over $500 million a year.To be sure, any frustrations about airfare prices haven't stopped many Americans from flying. When pandemic restrictions eased, Americans unleashed their <a target="_blank" href="https://www.businessinsider.com/flight-attendants-and-pilots-anxiously-gear-up-for-summer-travel-2023-5">pent-up travel demand</a> on the airline industry. And that momentum has continued: on May 24, TSA officers screened nearly three million passengers, a <a target="_blank" href="https://www.cnn.com/2024/05/25/business/tsa-travel-record-memorial-day-weekend/index.html">record</a> figure.Still, the overall <a target="_blank" href="https://fred.stlouisfed.org/series/CUSR0000SETG01">decline</a> in actual airfare prices over the last two years suggests passenger demand "seems to have subsided" a bit, Kerry Tan, a professor of economics at Loyola University Maryland, told BI via email. He said this suggests demand could be normalizing and that some Americans balked at 2022's <a target="_blank" href="https://www.businessinsider.com/why-airfare-is-so-high-fuel-prices-demand-2022-4">uptick in flight prices</a> — even though tickets remained more affordable than pre-pandemic levels when adjusted for inflation.Going forward, airlines will continue to be impacted by Americans' perception of flight prices. To the extent this perception influences Americans' broader <a target="_blank" href="https://www.businessinsider.com/president-joe-biden-donald-trump-economy-voters-polls-jobs-inflation-2024-2">feelings about inflation and the economy</a>, it could play a role in the presidential election this fall.Business Insider spoke with airline industry experts to learn why inflation-adjusted airfares have fallen over the past two decades — and why some Americans don't seem to have noticed.<h2 id="8c5e1c74-c9f1-4f2a-a611-1ce3f2f43bd4">Why flights have become more affordable</h2>Airline industry experts told BI that one of the biggest factors driving down inflation-adjusted airfares is the rise of lower-cost, budget airlines.In 2000, United, American, and Delta flights accounted for <a target="_blank" href="https://www.airlines.org/dataset/a4a-presentation-industry-review-and-outlook/">73%</a> of US domestic passengers, according to an analysis of Department of Transportation data by the trade association Airlines for America. By 2023, their share of passengers had fallen to 52% as lower-cost airlines like Southwest, JetBlue, Spirit, and Frontier emerged.This development led to cheaper airfares through what airline insiders call the "Southwest Effect.""When researchers have studied airfare, they've found that when a low-cost carrier like Southwest or Spirit begins flying a new route, fares fall an average of 20% on all airlines operating that route," Keyes said. "That's because price is by far the most important factor for leisure travelers' purchase decision, and so competition from new airlines — especially low-cost carriers — drives down fares across the board."Keyes said another factor that has pushed down fares is "more and larger airplanes."In addition to having more planes in their fleets than they used to, airlines have retired smaller planes in recent decades and replaced them with larger aircraft. In 2005, <a target="_blank" href="https://www.airlines.org/dataset/a4a-presentation-industry-review-and-outlook/">11%</a> of commercial airplanes had at least 151 seats — compared to 48% as of 2023."Larger planes, better fuel efficiency, and more seats are lowering the overall flight costs for airlines, and those savings are being passed onto travelers," Keyes said.Despite the competition of cheaper airlines — and the lower inflation-adjusted fares they helped bring about — airlines like United, American, and Delta haven't suffered for it financially."The decline in inflation-adjusted airfares appears to be uncorrelated with the financial performance of the 'big three' airlines," Tan said.Keyes said the years between 2015 and 2019 were "among the most profitable ever" for US airlines. He said declining inflation-adjusted fares haven't hindered airline profits because their business models aren't as reliant on ticket revenue as they used to be."Today, airline revenue comes primarily from sources other than economy tickets," he said. "This includes premium cabin revenue, credit cards, business travel, ancillary fees, cargo, and other sources."<h2 id="286ca0aa-d6de-4865-8a5e-fbb1378a8acf">Why Americans don't feel like they're getting a deal on airfares</h2>If airfare prices are more affordable than they used to be, there could be several explanations why Americans remain frustrated."Consumers may not always think about inflation-adjusted airfares, so their frustration could be due to the higher nominal level of prices," Tan said. "It could also be that travelers are more frustrated by their travel experience as there's been a slight increase in <a target="_blank" href="https://www.businessinsider.com/flight-delays-newark-forced-passenger-drive-take-flight-find-luggage-2023-6">flight delays</a> since the COVID-19 pandemic."It's also possible that after airfare prices plummeted due to the pandemic, 2022's swift rise in airfares caught Americans off guard. In September 2022, airfares rose roughly 43% compared to the prior year, the <a target="_blank" href="https://thehill.com/policy/transportation/aviation/3686319-airfares-rose-record-43-percent-annually-cpi/">highest</a> rate on record.Additionally, airfare isn't the only cost of flying — many passengers pay fees for things like extra baggage and seat assignments. These fees can be tacked on well into the booking process, something the Biden Administration is <a target="_blank" href="https://www.businessinsider.com/hidden-junk-fees-companies-biden-crackdown-lobbyists-fighting-rules-2023-11">trying to crack down on</a>. Fourty-four percent of Americans said they at least sometimes pay more for airfares than the initial price they were shown, according to a YouGov <a target="_blank" href="https://today.yougov.com/consumer/articles/47641-how-americans-feel-ticket-prices-transparency-airline-flights-poll">survey</a> conducted last July. This year, United, American, and Delta have each <a target="_blank" href="https://www.businessinsider.com/delta-raises-checked-bag-fees-joins-american-united-airlines-2024-3">raised their checked bag fees</a>.But while these fees may be costly to some customers, Keyes said they haven't done much to offset the decline in inflation-adjusted airfares. The Airlines for America analysis found that including fees for baggage and reservation changes, the average US roundtrip ticket was <a target="_blank" href="https://www.airlines.org/dataset/a4a-presentation-industry-review-and-outlook/">$406</a> in 2023. Since 2010, only 2020 and 2021 offered more affordable flights — much of which was due to the decline in demand tied to the pandemic.It's also possible the <a target="_blank" href="https://www.businessinsider.com/high-prices-inflation-sticking-interest-rate-hikes-stock-market-2024-5">rising prices of goods and services</a> across the US economy have left Americans with less money to spend on airfares, which is what's making their plane tickets feel particularly expensive. Some people have stuck with their pandemic habit of booking flights only a few weeks in advance due to uncertainty surrounding their travel plans, Hayley Berg, Hopper's lead economist, <a target="_blank" href="https://www.nerdwallet.com/article/travel/2023-airfares">told</a> NerdWallet. She recommended booking at least one month in advance to get lower airfares.For some Americans, plane tickets are among the most expensive purchases they make on a semi-regular basis, something that could make people particularly sensitive to price increases. For others, flying is something they <a target="_blank" href="https://www.airlines.org/dataset/air-travelers-in-america-annual-survey/">rarely do</a> — which could make them less likely to notice a decadeslong shift in inflation-adjuted prices.Lastly, the unpredictable nature of airfare price swings could be frustrating for consumers, Keyes said. And when it comes to economic issues like travel costs, it's not uncommon for Americans to have negative feelings that <a target="_blank" href="https://www.businessinsider.com/us-recession-americans-believe-economic-downturn-new-poll-unemployment-2024-5">don't jive with the data</a>."Airfare is the single most confusing and volatile purchase we regularly make," he said. "Combine that with negativity bias and it's no surprise that even as airfare hits historic lows, people are more likely to think it's at historic highs."Have you found a creative way to save money on travel or flights? Are you willing to share your story? If so, reach out to this reporter at <a target="_blank" href="mailto:jzinkula@businessinsider.com">jzinkula@businessinsider.com</a>.

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