BTS 06-15 Advisory BTS Releases 3rd-Quarter 2014 Air Fare Data The U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today that the average domestic air fare of $396 in the third quarter of 2014 was virtually the same as the average air fare in the third quarter of 2013, adjusted for inflation. During the July to September 2014 period,passengers originating inCincinnati, Ohio, paid the highest average fare, $533, while passengers originating in Mesa, Arizona, paid the lowest, $100. BTS reports average fares based on domestic itinerary fares. Itinerary fares consist of round-trip fares, unless the customer does not purchase a return trip. In that case, the one-way fare is included. One-way trips accounted for 33 percent of fares calculated for the third quarter of 2014. Fares are based on the total ticket value, which consists of the price charged by the airlines plus any additional taxes and fees levied by an outside entity at the time of purchase. Fares include only the price paid at the time of the ticket purchase and do not include other fees, such as baggage fees, paid at either the airport or onboard the aircraft. Averages do not include frequent-flyer or “zero fares,” or abnormally high reported fares. Constant 2014 dollars are used for inflation adjustment. Inflation-Adjusted Air Fares Third-quarter fares rose 17.2 percent from the recession-affected low of $338 in 2009 to the third quarter of 2011. Since 2011, third quarter fares have shown little change, increasing 4.7 percent from 2011 to 2014. The third-quarter 2014 fare was down 16.4 percent from the average fare of $461 in 2000, the highest inflation-adjusted third quarter average fare in the 19 years since BTS began collecting air fare records in 1995. The 16.4 percent decline took place while overall consumer prices rose 37 percent. Since 1995, inflation-adjusted fares declined 11.3 percent compared to a 55.4 percent increase in overall consumer prices. U.S. passenger airlines collected 71.8 percent of their total revenue from passenger fares during the third quarter of 2014, down from 1990 when 87.6 percent of airline revenue was received from fares. Quarter-to-Quarter Change In the three-year period from the third quarter of 2011 to the third quarter of 2014, inflation-adjusted fares increased 4.7 percent. In the two-year period from the third quarter of 2012 to the third quarter of 2014, inflation-adjusted fares decreased 1.0 percent. See BTS Air Fare Release for summary tables and additional data. See BTS Air Fare web page for historic data. ###
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BTS Releases 3rd-Quarter 2014 Air Fare Data
