Surprise: Airline Ticket Prices Have Fallen 50% in the Last 30 Years

Discussion in 'General Discussion | Travel' started by sobore, Feb 22, 2013.  |  Print Topic

  1. sobore
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    sobore Gold Member

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    http://www.theatlantic.com/business...s-have-fallen-50-in-the-last-30-years/273354/

    When US Airways and American Airlines announced their mega-merger last week, it was greeted with the sort of shrieking with which coach passengers are all too familiar. Flyers already hate the fees, delays, cramped quarters, and "meat specials" they're subjected to on America's legacy carriers. And make no mistake, more mergers might mean worse service, higher prices and equally "special" meat dinners. But look on the bright side: It has been an astonishingly good 30 years for American flyers.

    Competition and price strategy has pushed down real airfare prices "by half since 1978 to about 4.16 cents per passenger per mile, before taxes," Eduardo Porter reported in his book The Price of Everything. And here's the graph for that:

    [​IMG]

    With average prices collapsing, especially with sites like Kayak making fares ultra-transparent in the 1990s and 2000s, airlines have had to stretch everywhere, Mark J. Perry reports. The industry lost an astounding $51 billion between 2001 and 2011, and it's only made a collective profit in half of the years since 1981.


    Read More: http://www.theatlantic.com/business...s-have-fallen-50-in-the-last-30-years/273354/
     
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  2. uggboy
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    uggboy Gold Member

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    That's a surprise indeed, especially looking at airfares right now. ;)
     
  3. bez7
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    bez7 Gold Member

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    I flew SLC - JFK in 1990 for $386 and remember thinking it was a REALLY good deal...I'm amazed that airlines function as well as they do on the cheap fares we have today.
     
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  4. Hattie105

    Hattie105 Member

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