Airline fuel costs are at a 12 year low after the crude oil sector crash, making it a good time for travelers to pack their bags and plan their adventures. Many airlines have reduced ticket fares and are seeing an increase in passengers in all sectors of air travel. U.S. air carriers have seen unprecedented growth and global air passenger data shows that growth rates remain high.
According to the International Air Transport Association global air travel prices have fallen about 10 percent compared to the same period a year ago. Experts have consistently said that the lower prices are due to the cheaper airline fuel.
Airline fares are often determined based on demand on certain routes, but due to lower prices of fuel, it has been easier for companies to lower prices leading to a surge in traffic, experts said. .
Jet Fuel prices in the U.S. Gulf Coast are around $1.27 a gallon, which is down from $2.80 a year ago, according to spot market intelligence provided by a major media company.
Airlines are using various strategies to maximize the benefits of lower fuel costs. This include making orders for new planes and using their already owned planes more by adding extra routes and options like lower priced red-eye flights. Generating more traffic is only possible by putting more planes in the sky, according to industry experts.
Passengers wouldn’t mind choosing a red eye flight over a day’s travel if they can save a considerable amount of money, an airline industry expert said.
Surprisingly, even with the lower prices of jet fuel, the consumption did not increase. This is due to advancements in fuel efficiency and newer planes using lesser fuel compared to older models. Companies can also use older planes for longer periods without worrying about fuel efficiency when airline fuel prices remain low. This has enabled airlines to run their fleet at lower costs and keep ticket prices low even while providing quality service to passengers.
With air travel being cheaper, consumer confidence too has risen. This has led to growth in the sector and airline companies have changed their stance on guards against fuel price increases. Industry experts anticipate no real threat of a spike in the near future, as jet fuel prices are expected to remain low given the crude price scenario now.
This can only mean good news for passengers since airline tickets are now more readily available with a wide variety of choice and prices that are attractive. Use them wisely and spend your summer making some wonderful memories.