If you’re planning your next getaway, you’ve probably noticed the soaring prices of plane tickets. While recent regulations aim to reduce hidden airline fees, the question remains: why are flights so expensive? To understand the complexities behind airfare pricing, we consulted with industry experts: Ryan Ewing, Founder of AirlineGeeks; Anton Radchenko, CEO of AirAdvisor; and Mercedes Zach, Travel Agent at ASAP Tickets.
According to Ewing, pinpointing a single reason for high airfare is challenging. “Airlines employ entire departments dedicated to pricing strategies, making it a very intricate process,” he explains. He further notes, “Like most sectors globally, aviation is experiencing inflationary pressures, contributing to the rise in ticket costs.”
Let’s delve into the key factors influencing flight prices and explore practical tips to save money on your next trip.
Expert Insights
Ryan Ewing is the founder of AirlineGeeks, a leading source for aviation news and analysis.
Anton Radchenko is the CEO of AirAdvisor, a passenger rights advocacy company specializing in flight disruption compensation.
Mercedes Zach is a seasoned travel agent at ASAP Tickets, a comprehensive travel booking platform.
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Navigating airline ticket costs: A traveler checks in for their flight.
The Breakdown: Airline Taxes and Fees
A closer look at your online airfare purchase often reveals a surprisingly affordable base fare. However, the final price can nearly double due to added taxes and fees. These surcharges fall into two categories: government-imposed taxes and fees, and carrier-imposed fees.
Government taxes are mandatory and include charges like the U.S. Passenger Fee, the September 11th Security Fee (funding enhanced security measures), air transportation tax, federal segment fees, and airport facility charges. These amounts fluctuate based on your itinerary, including airport choices, layovers, and whether your flight is domestic or international.
Ewing highlights the impact of tourism taxes, stating, “Certain countries levy significant tourism taxes, which are embedded within your ticket price.” He advises travelers to examine their raw ticket post-purchase to fully understand the extent of these added taxes.
The disparity between domestic and international taxes is substantial. Consider a one-way, nonstop domestic flight from New York City (JFK) to San Francisco (SFO) on Delta Air Lines, priced at $378.10 in the Main Cabin. The cost breakdown is as follows:
- Base Fare: $337.67
- U.S. Transportation Tax: $25.33
- U.S. Passenger Facility Charge: $4.50
- U.S. Flight Segment Tax Domestic: $5.00
- U.S. Passenger Civil Aviation Security Service Fee: $5.60
In this domestic example, taxes and fees amount to $40.43 on a $337.67 base fare, approximately 12%.
Contrast this with an international round-trip flight from JFK to London (LHR) on Delta Air Lines in the Main Cabin, costing $825.60:
- Base Fare: $338.00
- Carrier-imposed international surcharge: $245.00
- U.S. Passenger Civil Aviation Security Service Fee: $5.60
- U.S. International Departure Tax: $44.40
- U.S. Passenger Facility Charge: $4.50
- U.S. APHIS Passenger Fee: $3.83
- U.K. Passenger Service Charge Departures: $60.80
- U.S. Customs User Fee: $6.97
- U.S. Immigration User Fee: $7.00
- U.K. Air Passenger Duty: $109.50
For this international flight, taxes and fees escalate to $487.60 on a $338.00 base fare, more than doubling the ticket’s initial cost. To mitigate these charges, consider alternative departure or arrival airports or routing your journey through different countries with lower tax regimes.
Learn how to secure the best flight deals with these booking strategies.
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Sunset view from an airplane window: Factors such as fuel costs and seat availability significantly influence flight prices.
Key Factors Driving Up Flight Costs
Beyond taxes, carrier-imposed fees are another significant component of airfare. These fees often cover fluctuating fuel costs and are particularly noticeable when using frequent flyer miles for bookings.
Radchenko points to rising jet fuel costs as a major driver. “The International Air Transport Association (IATA) projects jet fuel costs to reach $2.70 per gallon, an increase from the 2023 average of $2.66 per gallon,” he explains. He further cites an SEC filing by American Airlines indicating an anticipated average fuel cost between $2.80 and $2.90 per gallon, exceeding previous projections.
Airlines, like any business, aim to maintain profitability. Increased fuel expenses are inevitably transferred to consumers through higher ticket prices or fuel surcharges on reward redemptions.
Discover the optimal day and time to book flights and save money.
Seat availability is another critical determinant of flight prices. Zach notes a positive trend: “According to an OAG report, global seat capacity in 2023 was nearing pre-pandemic levels, and projections for early 2024 indicate capacity exceeding 2019 figures. This suggests greater price stability and predictability in airfares moving forward.” This capacity increase ideally should moderate or even reduce flight prices in the near future.
However, the ongoing Boeing aircraft concerns introduce uncertainty into seat availability. Safety and performance issues with the Boeing 737 Max have led some travelers to actively avoid flights operated by these aircraft, utilizing search engines to filter out Boeing planes during booking.
Ewing emphasizes the impact of aircraft delivery delays, particularly for major airlines like United and Southwest, which have significantly reduced their planned aircraft acquisitions for 2024. “This reduction in planned fleet expansion translates to fewer seats available than initially anticipated, impacting capacity growth,” he states.
Basic economics of supply and demand then come into play. Reduced seat supply coinciding with peak travel demand, particularly during summer, naturally leads to increased flight costs.
Staff shortages within the travel industry also contribute to higher fares. Zach explains, “Labor shortages, from pilots and flight attendants to maintenance personnel, persist across the aviation sector. Pandemic-era layoffs have not been fully reversed by airlines and airport service providers.”
Higher labor costs and reduced staffing levels can result in fewer flights and, consequently, higher prices. The ICAO estimates a need for 480,000 new aircraft technicians and over 350,000 pilots by 2026, highlighting the long-term nature of these staffing challenges.
Smart Strategies to Save on Airfare
Flexibility is paramount when seeking affordable flights. Personal experience as a full-time traveler confirms that adjusting travel dates by even a day or considering nearby airports can yield substantial savings. Opting for less popular destinations or traveling during the off-season can also dramatically reduce both airfare and accommodation expenses.
Ewing recommends utilizing flight search engines effectively. “Google Flights is my go-to platform. Its filtering capabilities allow for precise searches based on various criteria,” he advises. Flight search engines like Google Flights are invaluable tools for exploring destinations based on budget, using the “anywhere” feature to compare flight costs from your departure airport and uncover potential deals.
Find out the best time to book flights for domestic, international, and summer travel to secure the cheapest fares.
Considering budget airlines can also unlock savings. Ewing notes, “Perceptions of ultra-low-cost carriers are evolving. Many now offer enhanced premium products.” He cites Frontier Airlines’ “UpFront Plus” as an example, providing a blocked middle seat and first-class-style seating for an additional fee. These airlines allow travelers to customize their travel experience while potentially paying significantly less than traditional carriers.
Redeeming frequent flyer miles can also minimize costs, particularly by potentially bypassing some government-imposed taxes. For example, the JFK to SFO flight mentioned earlier could cost 20,500 Delta SkyMiles plus a minimal $5.60 September 11th Security Fee, eliminating a significant portion of taxes and fees. However, fuel surcharges may apply to certain routes when redeeming miles.
While flight prices can be high, affordable options exist. When you spot a great deal, it’s wise to book promptly, as favorable fares are often fleeting.
