Don't Expect Cheap Airfares to Come Back Soon, Airline Executives Say

[mahatmakanejeeves]

Don’t expect cheap airfares to come back soon, airline executives say

wsj.com
Don’t Expect Cheap Airfares to Come Back Soon, Airline Executives Say
Travel demand has surged, but the supply of flights hasn’t kept up, leading to higher airfares and revenues for airlines.

Link to tweet

[CurtEastPoint]

1. I remember the good old days when fares were regulated.

[mahatmakanejeeves]

2. And high.

Airline deregulation

{snip}

Post-deregulation

{snip}

Price

Base ticket prices have declined steadily since deregulation. The inflation-adjusted 1982 constant dollar yield for airlines has fallen from 12.3 cents in 1978 to 7.9 cents in 1997. and the inflation adjusted real price of flying fell 44.9% from 1978 to 2011. Along with a rising US population and the increasing demand of workforce mobility, these trends were some of the catalysts for dramatic expansion in passenger miles flown, increasing from 250 million passenger miles in 1978 to 750 million passenger miles in 2005.

{snip}

[CurtEastPoint]

3. yeah, I forgot that part!