Re:Air Fares 101 – Why do fares change all the time?
by jusben1369 on Monday December 15, 2014 @01:39PM
(#8753519)
Airfares are most definitely higher than they were in the mid 2000's. The global recession saw a big cut back in capacity and that capacity hasn't been added back in to the system to offset the ever stronger economy. Flights are fuller than they've been in a long time meaning higher fares etc.
Re:Air Fares 101 – Why do fares change all the time?
by thedufer on Monday December 15, 2014 @09:40PM
(#8755612)
> Airfares are most definitely higher than they were in the mid 2000's
We've established that. The data shows that flights this year were about 13% higher than at the lowest point, which was 2009 (recession). They are a little under 5% higher than the lowest point during the "mid 2000's". These numbers (~.25% increase per year over 10 years) are fairly insignificant when you look at the broader trends (>1% decrease per year over 3-4 decades).
Real prices have dropped 14% in the past 19 years, and have been basically flat since 2004, except for an obviously anomalous dip during the financial crisis (2009/2010). The prevailing trend lines are a steady drop of 1.7% per year from 1995-2004 and then a flat-line (.15% increase per year) 2004-2014. To go back a bit further, airfare dropped over 50% 1978-2006[1]. That is, the trend in the late '90s didn't start in '95.
So no, parent's comment isn't quite literally true (prices have gone up 1.5% in the last decade), but historically prices clearly trend down, which I think is the point.
[1] http://web.mit.edu/airlines/analysis/analysis_airline_indust...