So, how expensive is fuel for the airline industry? Brace yourself: the situation is pretty ugly. In April 2011, airlines in the United States dropped an average of $2.99 a gallon on fuel. That number sounds a lot better than what you’re seeing at the pump, right? How can it be that bad?
Well, this is yet another month-over-month increase. In March, the airlines spent an average of only $2.80 a gallon on get fuel, according to the latest data from the U.S Department of Transportation‘s Bureau of Transportation Statistics. In 30 days, we’re looking at a 6.8 percent spike. Look back even further, and the numbers don’t get any prettier. In April 2010, the U.S. airline industry spent an average of $2.29 on fuel. In one year, the average cost has surged an incredible 31 percent!
If you thought driving was too expensive because of gas prices, you’ll find the skies decidedly unfriendly.
[photo by octal via Flickr]
In past years, Memorial Day signaled the end of sweetheart flight prices. This year, a sinking economy stretched the deals a bit longer, but experts say the good times may be coming to a close. Remember the problems last summer, with higher prices blamed on jet fuel? Well, we could see the cost of oil work the same dismal magic this summer.
Rick Seaney, CEO of FareCompare.com, cites recent fare increases of $10 to $20 per roundtrip as an indicator that we are the brink of an upswing. But, these are counterbalanced by new lows elsewhere. A recent survey by Travelocity shows ticket prices down 17 percent for trips between Memorial Day and Labor Day. So, buyers and sellers are locked in a silent struggle to determine how much your next vacation will cost.
With an eye out for possible deals, customers are waiting, booking their flights 86 days ahead instead of the usual 90. While this doesn’t seem like much, it takes a lot of last minute purchases to bring the average down.
Even if airline fares are coming back, you can still take advantage of the lows now. If you’re thinking about taking a vacation, stop … and take action instead.