The Reason Airfare Could Be A Lot More Expensive In 2018
Ticket prices for flights within the U.S. could rise this year, according to the CEO of a major airline.
If you became accustomed to rock-bottom fares in 2017, it seems like 2018 could be a return to the ticket prices of the early 2010s. American Airlines CEO Doug Parker forecasted more expensive plane tickets for the coming year, and his reasoning makes sense.
So what’s going to drive up the cost of air travel? The rising cost of oil. Because fuel is among an airline’s largest expenses, higher oil prices translates almost directly to higher ticket prices.
“Fares are too low for oil prices this high, and over time you’ll see that adjust, but it takes time,” Parker said in an interview with USA Today.
This is sobering news in the wake of rumors of a “fare war” between larger carriers like United and new low-cost airlines like Spirit and Frontier. The airline giant has announced plans to add flights and larger aircraft in order to compete with the cheap fares of budget airlines.