Avaricious Airfares

airlinesOver the last year jet fuel prices fell 23.5% but fares only declined 4.7%! It’s because fuel is 26% of the cost of a ticket, and airlines hedge their fuel needs to guarantee price stability which prevents them from realizing savings when prices fall. Also, when energy prices have historically surged, fares have generally risen more slowly than fuel costs. Lastly, airlines keep some of the savings to boost profits.

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