Average airfare up 4.4 percent this spring, slightly ahead of inflation

July 23rd, 2008 at 02:36pm Thomas V. Bona

The U.S. Bureau of Transportation Statistics just released its quarterly look at airfare. Data is from first quarter 2008, so it doesn’t include the recent run-up in fares from April through now. Still, some interesting takeaways:

• Average domestic air fares in the first quarter of 2008 were up 4.4 percent from the first quarter of 2007 in the largest year-to-year increase since second quarter 2006. In the same time period, inflation rose 4 percent.
• However, average fares remained 4.6 percent below the January-to-March high set in 2001.
• Average fares increased 11.7 percent from the first quarter of 1995 to the first quarter of 2008, compared to a cumulative 41.0 percent inflation rate. So until recently, air fare wasn’t keeping up with inflation (hence the “era of cheap travel” as I’ve put it).
• The average domestic itinerary fare in the first quarter of 2008 of $332 was the highest average fare since the second quarter of 2006. The first-quarter 2008 average fare was up 10.1 percent from the post-9/11 first-quarter low of $301 in 2005. (Fares include taxes and fees.)
• Of the top 100 busiest airports, the highest average fares were in Cincinnati ($535) again. Madison, Wisc., was third at $455. That’s for round trips or one-ways with no return flight.
• Other airports in the area: O’Hare was 40th at $342, Milwaukee was 41st at $340 and Midway was 90th at $253.
• Airfare rose at Madison 8.4 percent in the past year and 13.4 percent since 2001. O’Hare airfare rose 10 percent in the past year, but dropped 16.7 percent since 2001, Milwaukee rose just 0.9 percent in the past year and dropped 11.1 percent since 2001 and Midway rose 13.3 percent in the past year and 12.3 percent since 2001. Midway had the fifth-highest increase in the past year.
• Atlantic City had the lowest airfare at $109, down a whopping 48.6 percent from the past year. Rockford favorite Las Vegas has the fifth-lowest at $241 (Fort Lauderdale is also pretty low, wonder if there’s an Allegiant Air effect? No, it’s just that leisure markets are generally cheaper.)

A lot to digest, I know, but interesting. Wonder how this will look when the next report comes out in three months.

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