Airline fares continue to march upward, rising 2.3 percent in January following a 2.7 percent uptick in December and a 4.7 percent jump in November. January's airline fare increase far outpaced the overall Consumer Price Index for All Urban Consumers (CPI), which rose 0.6 percent for the month on a seasonally adjusted basis, according to the Bureau of Labor Statistics.
Over the last 12 months, the index for airline fares rose 1.9 percent on a seasonally adjusted basis.
Over the last 12 months, the index for airline fares rose 1.9 percent on a seasonally adjusted basis.
Industry observers as well as frequent flyers know that the CPI's airline fare index does not necessarily reflect the all-in cost of an airline journey.
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.
Although the three major U.S. carriers announced in September 2020 that they would eliminate the fees for changing tickets, other nickel-and-dime charges remain, and the carriers continue in lock step. While American Airlines (NASDAQ:AAL) and Delta Air Lines (NYSE:DAL) quickly followed United's (NYSE:UAL) lead in abolishing change fees last year, in February 2020 United raised its fees for checked bags from $30 to $35 for the first bag, and from $40 to $45 for the second. jetBlue (NASDAQ:JBLU) quickly followed suit, while American and Delta held fast at $30 for the first bag and $40 for the second. While baggage fees are included, other similar nickel-and-dime charges are not tracked in the airline fare index.
In other areas, increases in the indexes for food, electricity, and shelter were the largest contributors to the seasonally adjusted all items increase. The food index rose 0.9 percent in January following a 0.5-percent increase in December. The energy index also increased 0.9 percent over the month, with an increase in the electricity index being partially offset by declines in the gasoline index and the natural gas index.
The index for all items less food and energy rose 0.6 percent in January, the same increase as in December. This was the seventh time in the last 10 months it has increased at least 0.5 percent. Along with the index for shelter, the indexes for household furnishings and operations, used cars and trucks, medical care, and apparel were among many indexes that increased over the month.
The all items index rose 7.5 percent for the 12 months ending January, the largest 12-month increase since the period ending February 1982. The all items less food and energy index rose 6.0 percent, the largest 12-month change since the period ending August 1982. The energy index rose 27.0 percent over the last year, and the food index increased 7.0 percent, the BLS said in its Feb. 10 statement.
Visit my main page at TheTravelPro.us for more news, reviews, and personal observations on the world of upmarket travel.
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.
Although the three major U.S. carriers announced in September 2020 that they would eliminate the fees for changing tickets, other nickel-and-dime charges remain, and the carriers continue in lock step. While American Airlines (NASDAQ:AAL) and Delta Air Lines (NYSE:DAL) quickly followed United's (NYSE:UAL) lead in abolishing change fees last year, in February 2020 United raised its fees for checked bags from $30 to $35 for the first bag, and from $40 to $45 for the second. jetBlue (NASDAQ:JBLU) quickly followed suit, while American and Delta held fast at $30 for the first bag and $40 for the second. While baggage fees are included, other similar nickel-and-dime charges are not tracked in the airline fare index.
In other areas, increases in the indexes for food, electricity, and shelter were the largest contributors to the seasonally adjusted all items increase. The food index rose 0.9 percent in January following a 0.5-percent increase in December. The energy index also increased 0.9 percent over the month, with an increase in the electricity index being partially offset by declines in the gasoline index and the natural gas index.
The index for all items less food and energy rose 0.6 percent in January, the same increase as in December. This was the seventh time in the last 10 months it has increased at least 0.5 percent. Along with the index for shelter, the indexes for household furnishings and operations, used cars and trucks, medical care, and apparel were among many indexes that increased over the month.
The all items index rose 7.5 percent for the 12 months ending January, the largest 12-month increase since the period ending February 1982. The all items less food and energy index rose 6.0 percent, the largest 12-month change since the period ending August 1982. The energy index rose 27.0 percent over the last year, and the food index increased 7.0 percent, the BLS said in its Feb. 10 statement.
Visit my main page at TheTravelPro.us for more news, reviews, and personal observations on the world of upmarket travel.
Comments
Post a Comment
PLEASE NOTE:Comments on this website must pertain to the topic of the article and may be edited for content and/or clarity. Comments that include URLs WILL NOT BE POSTED. Please contact me directly if you wish to do a "link exchange."