Airlines have used surging oil prices to justify fare increases of up to $60 per ticket since the start of the year. But the rising cost of fuel isn’t the only reason it’s getting more difficult to find cheap fares.
“This is probably going to be the worst year we have seen in 10 years in terms of finding bargains,” says Tom Parsons of , a website for travel deals.
Even before turmoil in the Middle East drove oil prices higher, airfares were headed up. The average cost of a round-trip ticket on a U.S. airline was $360 before taxes at the start of 2011, a 9 percent increase from the previous year. By summer, that figure could reach $430, says Robert Herbst, an independent airline analyst.
Airlines have the upper hand for several reasons:
• The improving economy. Business travelers are expected to take 441 million trips this year, a 3 percent increase from 2010. As a result, airlines are reserving more seats for pricey last-minute bookings. That leaves fewer cheap fares for leisure travelers.
• Fewer seats. Airlines reduced the number of routes and planes they fly.
• Consolidation. Six airlines have combined into just three over the past 14 months.
