US travellers started 2017 with a first-quarter average domestic airfare at its lowest point for 22 years when inflation was stripped out.
Newly released Department of Transportation figures show the inflation-adjusted average airfare of $US352 was the lowest first-quarter result since the DOT’s Bureau of Transportation Statistics started collecting airfares in 1995.
It was also 5 per cent lower than the same period in 2016, 28 per cent down from the highest adjusted figure reached in 1991 and 26.5 per cent below the 1995 figure. But it was 1.5 per cent higher than the fourth quarter of 2016 – the second successive quarterly increase after six consecutive quarters of falls.
In addition to being adjusted for inflation so fares can be compared in 2017 constant dollars, the overall average includes taxes and charges as well as one-way fares accounting for about 34 per cent of total domestic tickets. It does not include ancillary fees for items such as checked baggage.
The one-way average domestic fare for the quarter was $US256, while the average round-trip fare was $US417.
When inflation was not considered, the $US352 figure was the lowest first-quarter average since 2010 when the figure was $US328. It was also 2.6 per cent down on the same quarter of 2016 and 9.4 per cent lower than 2015’s first quarter.
Travellers also did well compared to other consumers when it came to fares.
“Since 1995, unadjusted fares rose 18.5 percent compared to a 61.3 percent increase in overall consumer prices,’’ the department said.
However, the figures showed airlines have increased their reliance on ancillary fees: the percentage of total revenue from ticket sales fell from 87.6 per cent in 1995 to 73.7 per cent in this year’s first quarter.
The airport from which passengers flew also made a difference, with smaller airports costing more.
“Of airports grouped by the number of originating passengers in the first quarter of 2017, the 13 airports with between 50,000 and 99,999 originating passengers had the highest average fares ($US386),’’ the bureau said. “Airports with 1.0 to 1.49 million originating passengers had the lowest average fares of any group ($US314).’’
