Laura Maudlin - May 29, 2007

The US airline industry has experienced 21 price increases since January 2006, and this trend is continuing. The average increase throughout this period has been 1.2%. However, those responsible for future growth in the US airline industry have over-estimated passenger numbers. As a result, summer passengers this year could enjoy some sort of price relief.


Basically, flights have been added at a faster rate than the industry has been growing. Now passengers are being offered aggressively cut deals and more seats are available at lower rates. Leisure fares especially are expected to be subject to decrease as seats need to be filled. Even if some ticket prices go up, it will only be by a marginal amount.


However, the cost of flying to Europe will rise dramatically, by around $100 each way, and you can add another $30 on top for security charges and airport taxes. For Americans, traveling to Europe is now an extremely expensive affair, particularly so when you take into   account the weakness of the dollar compared to European currencies.


Perhaps this is why hotels within the United States are expecting their best results since 2001; those planning trips within the US can easily find alternatives to air travel.


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