The aviation industry is currently placing a key area of reflection into the steady rise of US air fares. International news channel, Bloomsberg, tried to identify the different factors which have gone into contributing to this matter. Their interview with Cheapair.com Founder and CEO Jeffrey Klee, unearthed some important factors for as to why this is taking place within America.
Klee believes that the biggest factor has come down to there being four airlines who currently control a massive 80 per cent of the domestic market. Klee goes on to suggest, that ‘the airlines have a done a really good job, at least from a stockholders stand point, of maintaining capacity and discipline. There are less seats in the market, than there were and it has really become a sellers market.’
Important figures released this month reveal that domestic airfare in the US continues to outpace inflation, rising 2.7 per cent compared to the 2.1 per cent gain in the Consumer Price Index. The Associated Press have taken an analysis of data from the Airlines Reporting Corp., this revealed that airfare had gone up 10. 7 percent in the past five years, even after adjusting the amount for inflation.