Airline fares continued to drop in the January Consumer Price Index for All Urban Consumers (CPI-U) issued by the Bureau of Labor Statistics (BLS), U.S. Department of Labor.
While the overall CPI-U was unchanged, the airline fare index fell 0.9 percent in January following 1.5 percent decline in December and a 2.4 percent decline in November, 2018. In all of 2018, fares decreased for the sixth consecutive year, falling a total of 2.6 percent.
Frequent flyers, however, know that airline fares as tracked by the BLS don't tell the whole story.
Airlines continue to focus on increasing ancillary revenue, which carries an important caveat. While the BLS's calculations of airline fares include an allowance for checked bag fees, the BLS does not include other ancillary charges which represent an ever-larger percentage of airlines' overall revenue.
In September, American Airlines (NASDAQ:AAL), United (NYSE:UAL), Delta Air Lines (NYSE:DAL) and jetBlue (NASDAQ:JBLU) raised fees for checked bags from $25 to $30 for the first bag, and from $35 to $40 for the second. In addition, jetBlue and Alaska (NYSE:ALK) also raised date-change fees. Neither of these is tracked in the airline fare index.
The energy index declined for the third consecutive month, offsetting increases in the indexes for all items less food and energy and for food. All the major energy component indexes declined in January, with the gasoline index falling 5.5 percent. The food index increased 0.2 percent, with the index for food at home rising 0.1 percent and the food away from home index increasing 0.3 percent.
The index for all items less food and energy increased 0.2 percent in January for the fifth consecutive month. The indexes for shelter, apparel, medical care, recreation, and household furnishings and operations were among the indexes that rose in January, while the indexes for airline fares and for motor vehicle insurance declined.
The all items index increased 1.6 percent for the 12 months ending January, the smallest increase since the period ending June 2017. The index for all items less food and energy rose 2.2 percent over the last 12 months, the same increase as the 12 months ending November and December 2018. The food index rose 1.6 percent over the past year, while the energy index declined 4.8 percent, the BLS said in its Feb. 13 statement.
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While the overall CPI-U was unchanged, the airline fare index fell 0.9 percent in January following 1.5 percent decline in December and a 2.4 percent decline in November, 2018. In all of 2018, fares decreased for the sixth consecutive year, falling a total of 2.6 percent.
Frequent flyers, however, know that airline fares as tracked by the BLS don't tell the whole story.Airlines continue to focus on increasing ancillary revenue, which carries an important caveat. While the BLS's calculations of airline fares include an allowance for checked bag fees, the BLS does not include other ancillary charges which represent an ever-larger percentage of airlines' overall revenue.
In September, American Airlines (NASDAQ:AAL), United (NYSE:UAL), Delta Air Lines (NYSE:DAL) and jetBlue (NASDAQ:JBLU) raised fees for checked bags from $25 to $30 for the first bag, and from $35 to $40 for the second. In addition, jetBlue and Alaska (NYSE:ALK) also raised date-change fees. Neither of these is tracked in the airline fare index.
The energy index declined for the third consecutive month, offsetting increases in the indexes for all items less food and energy and for food. All the major energy component indexes declined in January, with the gasoline index falling 5.5 percent. The food index increased 0.2 percent, with the index for food at home rising 0.1 percent and the food away from home index increasing 0.3 percent.
The index for all items less food and energy increased 0.2 percent in January for the fifth consecutive month. The indexes for shelter, apparel, medical care, recreation, and household furnishings and operations were among the indexes that rose in January, while the indexes for airline fares and for motor vehicle insurance declined.
The all items index increased 1.6 percent for the 12 months ending January, the smallest increase since the period ending June 2017. The index for all items less food and energy rose 2.2 percent over the last 12 months, the same increase as the 12 months ending November and December 2018. The food index rose 1.6 percent over the past year, while the energy index declined 4.8 percent, the BLS said in its Feb. 13 statement.
Visit my main page at TheTravelPro.us for more news, reviews, and personal observations on the world of upmarket travel.
Follow @TheTravelProUS
If you found this article helpful, informative and/or entertaining, please consider making a donation via PayPal to help support this private project.
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