Recession Blues: Airfare

If the economy is in the tank, why does airfare keep going up?

Many factors have contributed to taking airfares to their highest levels since 2008, despite the lackluster economy.

• High fuel prices. With higher fuel prices, airlines simply can't afford to fly you for less. 
• High taxes (and they may get higher) The Air Transport Association reports: "In 2010, U.S. airlines and their passengers contributed $3.4 billion in taxes and fees to the Department of Homeland Security, including $2 billion in taxes and fees to the Transportation Security Administration – a 50 percent increase from the amount collected in 2002." And now U.S. lawmakers are looking to increase those taxes, following their misguided ideas that you have to raise taxes on any portions of industry that are actually surviving. 
• Business travel is up. Indicators suggest that business travel is making a comeback. And while that is a good sign for the economy, it makes it tough for the average family to take a vacation. 
• Airlines have switched out larger planes for smaller ones making some seats more expensive. 217 billion passengers flew in the summer of 2007; 206 billion passengers are expected to travel this summer. Supply and demand has caused airlines to use smaller planes, utilizing less fuel to cut costs. This means less seats and thus more competition for those seats. 

So you may have to accept that your ticket will cost more this summer. Here are a few ways to find the best fare:

1. Whenever possible, buy from an airline that will refund a price drop.  
2. Use Bing.com's airfare predictor before you buy. Bing will tell you their confidence level about whether fares on that route for those dates will increase, decrease, or remain steady. 
3. Buy your fare on a Tuesday. While not always the cheapest, most airlines release sale fares on Tuesdays and offer a certain number of seats at that rate. When they've sold that number, the fare will go up a tier. 
4. Fly on cheaper days. Fridays and Sundays are the most expensive days to fly. Wednesdays are typically the cheapest, followed by Tuesday and Saturday. 

And if all else fails, drive. 


Sources: Air Transport Association
FareCompare.Com
Bing Travel