Japan Airlines Lowers Fuel Surcharges As Of February 1, 2015

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  1. BoardingArea

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    Fuel prices have plummeted lately, which is good news all around. That being said, it hasn't had the impact on airfare that some people were expecting. The most common question this has raised is why it hasn't resulted in lower airfare. And that answer is surprisingly simple -- because the cost of airfare isn't really tied to the cost of providing it. Instead, like most things in the world, it's based on what price the market can support. In other words, when oil prices were super high and the economy was crap, that didn't somehow give the airlines the power to raise prices. Instead, a lot of them went out of business, capacity was cut, etc. So it's no surprise that airfare hasn't gone down, and that airlines are making billions of dollars. The market will eventually equalize itself, though. This game is cyclical -- for us, and for the airlines. The post Japan Airlines Lowers Fuel Surcharges As Of February 1, 2015 appeared first on One Mile at a Time.

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