Transport Airlines

The Spin About Lower Airfares is a Bundle of Lies

Excerpt from Jacksonville Business Journal

May 10, 2014 3:00 pm

Skift Take

Because of airlines’ unbundling of fares, it’s hard to get an apples to apples comparison of airfares then and now, but this article makes an admirable attempt at getting past the government and airline industry handouts to get at the truth of the trends.

— Dennis Schaal

Free Report: The Megatrends Defining Travel in 2015

Damian Dovarganes  / Associated Press

The true cost of flying is on the rise, although the airline industry is telling a different story. Pictured, travelers standing in line at the LAX International Airport in Los Angeles on April 22, 2013. Damian Dovarganes / Associated Press

The airline industry’s trade group wants you to believe airfares are plunging. A government data dump last month claimed fares may be 15 percent lower han 20 years ago.

The truth, of course, is the exact opposite. The real price of flying has risen sharply since the dawn of deregulation and far outpaces the inflation rate of the last 40 years.

The government’s data come from the reliable Bureau of Transportation Statistics (BTS), but suffer from outdated methodology that ignores the airline industry’s relentless drive to strip products and services from the published airfare.

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