Affordable Airline TicketsAccessible airline tickets
Soon after Pan American Airways flew from New York to London in 1959, a round-trip flight today costs $3,800 - in economic travel. Over half a hundred years later, Pan Am has long since disappeared and the newly arrived Norway Air Shuttle organised a $65 one-way campaign on 10 new flights from the North East of the USA to Ireland and Scotland.
They are also a sign that with new low-cost airlines extending their flights across the US, Atlantic and Pacific, we are entering a new gold era of affordable aviation. Last but not least, when aviation was so affordable, the business world was in free fall. What was it? During the first half of 2016, the price of an annual return flight averaged US$369, which included a fee of US$23.
This is the slowest since the outbreak of the 2009 and 2010 global economic crises, according to Airline for America, which represented almost all US carrier. The airline analyst attributes lower US fares to declining US fuel costs and a new generations of aircraft. A further major driver is the increase in low-cost companies such as Spirit Airways (SAVE), Frontier Airways and Allegiant Airways (ALGT), which are compelling their rivals to keep up.
American Airlines (AAL) and United Airlines (UAL) last weeks began to sell new Basic Economy rates, transforming things that used to be brackets - such as luggage compartment accessibility and the option to pick your own place - into luxury extra. On Monday, United introduced a dozen new low-cost carrier itineraries.
There are still large differences in fares between routes and regions, but fares are dropping worldwide. Mean global round trips in 2017 are estimated at $351, 63% less than in 1995, after adjustment for inflation, according to the International Air Transport Association, which said that this number does not includes charges.
Whilst Flyer have good reasons to party, the airline companies (and their investors) should not be particularly satisfied with this development. US carriers report records earnings and their stocks rise. Air carriers have tried on several occasions to assure investor that the reversal will take place.