Gas prices going down- will this affect airfare?

[Smiling Cheshire Cat]

I'm hopeful that airfare might go down as gas prices are going down. What does anyone else think?

I'm suprised at how much more airfare is this year as opposed to last year. We traveled last year the first week of August (still summer fares) for $180 per person on Delta. This year we want to go the last week of September and it is $380 per person.

I'm going to keep searching for a lower fare...

 

[Donna M]

I'm hoping the same thing will happen. It makes sense to me! What were the airlines' reasons for raising the prices? I am assuming the main reason was fuel prices. Since we are going in April, that should give them time to readjust the price downward.

 

[OrangeCountyCommuter]

I actually read an aritcle on this last week. Don't recall where so I can't link, but short version...

Don't count on it.

It pointed out that actually jet fuel is not going down at the same rate automobil gas is... so the airlines are not seeing the same "relief" at the pump you and I are.

 

[Donna M]

I actually read an aritcle on this last week. Don't recall where so I can't link, but short version...

Don't count on it.

It pointed out that actually jet fuel is not going down at the same rate automobil gas is... so the airlines are not seeing the same "relief" at the pump you and I are.

Darn I'm going to still keep my fingers crossed.

 

[DebbieB]

I think the prices have gone up because of less competition, not the fuel prices. United/Continental merged, Southwest/AirTran merged. Why raise the prices? Because they can. Before the mergers, some airlines were losing money big time, now they are making profits.

 

[soxfan11901]

Airlines buy fuel under contract prices(called hedging). So they pay a certain rate for a certain length of time. This protects them in case of a large spike in fuel costs, but short term dips in fuel prices are not going to have an effect on their contract costs.

 

[chartle]

Also part of the rise and fall of gasoline has to do with supply and demand from the refiners and things like the switch over from winter to summer blends.

 

[TDC Nala]

You might see some sales, but expect basic airfares to remain high.

 

[EMAW_KSU]

I think the prices have gone up because of less competition, not the fuel prices. United/Continental merged, Southwest/AirTran merged. Why raise the prices? Because they can. Before the mergers, some airlines were losing money big time, now they are making profits.

That is why they are in business to make a profit. It would be nice to have very cheap airfare.