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Average Fourth-Quarter Air Fares Rose 4.0 Percent from 2006 Top 100 Airports: Highest Fare in Anchorage, Lowest Fare at Hilo, HI
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Contact |
BTS 19-08
Dave Smallen
202-366-5568 |
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Wednesday, April 23, 2008 - Average
air fares in the fourth quarter of 2007 were up 4.0
percent from the fourth quarter of 2006, reaching the highest fourth-quarter
level since 2001 but remaining 2.7 percent below the high set in 2000 for any October-to-December
period (Table 1), the U.S. Department of Transportation’s Bureau of
Transportation Statistics (BTS) reported today.
BTS, a part of the Research and
Innovative Technology Administration, reported that the
average domestic itinerary fare in the fourth quarter
of 2007 of $331 was the highest average fare since the second quarter of 2006 (Table
2). The fourth-quarter 2007 average fare was up 11.3 percent from the
post-9/11 fourth-quarter low of $297 in 2004
(Table 6).
Average
fares are based on domestic itinerary fares, round-trip or one-way for which no
return is purchased. Fares include taxes and fees. Averages do not include
frequent-flyer or “zero fares” or a few abnormally high reported fares. Average
fares in this release may not be comparable to BTS fare press releases before
the second quarter of 2007 which did not exclude frequent flyer fares or
abnormally high fares. Bulk fares
continue to be excluded as in earlier releases.
Average air fares in the fourth quarter rose 1.0 percent from the third-quarter
2007 average of $328 (Table 2). Quarter-to-quarter changes may be affected by
seasonal factors.
Of the top 100 airports based on
originating passengers, the highest fourth-quarter
average fares were in Anchorage, AK;
followed by Cincinnati, OH;
San Francisco; Madison,
WI; and Knoxville,
TN. The lowest fares in the top 100 airports were at four Hawaii
airports followed by Dallas Love (Table 3). See http://www.bts.gov/xml/atpi/src/index.xml for average fares for the top 100 airports.
The largest year-to-year average fare increase for the fourth quarter among the 100 largest airports,
ranked by originating passengers, was 16.2 percent in Houston,
followed by Washington Reagan; Boston;
Washington Dulles, and Honolulu
(Table 4).
The biggest year-to-year average decrease was 18.5 percent
in Charleston, SC, followed by White Plains,
NY; Wichita,
KS; Memphis,
TN; and Columbus,
OH (Table 4).
Four
of the five largest average fare increases from the fourth quarter of 1995 to the fourth quarter
of 2007 were at Hawaii airports. The other top fare increase
over this 12-year period took place at Dallas Love (Table 5).
The largest average
fare decrease from the fourth quarter of 1995
to the fourth quarter of 2007 was 38.9 percent
in White
Plains, NY. The
other top five average fare decreases over this period took place at Manchester, NH;
Akron/Canton, OH; Flint, MI;
and Providence, RI (Table 5).
The Air Travel Price Index (ATPI)
A
separate measure of fares, the BTS Air Travel Price Index (ATPI) was up 4.1
percent from the fourth quarter of 2006 to the fourth quarter of 2007, reaching the highest fourth-quarter
level recorded in the 13 years of the ATPI (Table 8) (1995 1st quarter = 100). The ATPI is up 6.4
percent from its pre-9/11 fourth quarter high set in 2000 and up 16.1 percent
from its post-9/11 fourth quarter low set in 2004 (Table 7).
ATPI
is a statistical index that documents quarterly changes in airline prices since
the first quarter of 1995. The index measures changes in airline ticket
prices used on identical routings and identical classes of service on a quarter-by-quarter
basis. The index can be used to compare airfares in the most recent
available quarter to any quarter since the base year of 1995.
While the ATPI measures changes in fares, average fares
measure the actual amount paid by passengers, including taxes and fees. Average fares take account of both the level
of fares and the number of passengers purchasing fares at different
levels. Average fares do not necessarily
account for the level of service, as ATPI does.
Average
fare calculations and the ATPI, while similar, measure air fares in two
different ways and may produce different results. ATPI measures the rise in airfares and
average fares show the increased use of lower fares. The varying results
reflect trends in the airline industry that have resulted in more passengers
using lower air fares even though fare levels continue to rise. Three of these trends follow.
First,
low-cost carriers, which generally offer lower fares, now carry more than 27
percent of all domestic enplaned passengers, up from about 14 percent in
1995. Second, the network carriers have
been forced to match some of the low-cost carrier relaxed fare rules, such as
eliminating the “Saturday Night Stay Rule”, which has allowed more passengers
to purchase lower fares. Third, use of
the internet allows almost instant price comparisons that give the customer the
opportunity for unprecedented low-fare shopping.
The
4.1 percent rise in the ATPI from the fourth quarter
of 2006 to the fourth quarter of 2007 is the
third consecutive year-to-year increase (Table 8).
The
ATPI declined 0.1 percent from the third quarter to the fourth quarter of 2007. Quarter-to-quarter changes may be
affected by seasonal factors (Table 2).
The largest
year-to-year fare index increase for the fourth quarter
among the 85 largest airline markets, ranked by passengers, was 11.0 percent in Houston, TX,
followed by Charlotte, NC;
Buffalo/Niagara, NY; Boston; and Washington DC (Table 9).
The biggest year-to-year ATPI decrease for the fourth quarter was 10.8 percent for trips
originating in Charleston, SC;
followed by Savannah, GA;
Anchorage, AK;
Memphis, TN;
and Kona, HI
(Table 9).
The largest fare index increase from the fourth quarter of 1995 to the fourth quarter of 2007 was 182.9 percent in Long
Beach, CA. The other top ATPI
increases over this period took place at Lihui (Kauai),
HI; Burbank/Glendale/Pasadena, CA; Phoenix;
and Kona, HI.
(Table 10).
The only fourth-quarter
12-year fare index decrease was in Richmond, VA.
The four markets with the smallest increases were Manchester,
NH; Baltimore,
MD; Denver;
and Rochester, NY
(Table 10).
Additional information about average
fares, including fares for the top 100 airports based on U.S. originating domestic passengers, can be found on the BTS website at http://www.bts.gov/xml/atpi/src/index.xml. Additional information can also be found on
that page about the ATPI, including indexes for foreign-origin itineraries and the
top 85 air travel markets based on originating passengers. First-quarter 2008 average fare data and the
ATPI will be released on July 23.
The ATPI series are computed using a price index
methodology. Although the ATPI is computed using a tested index
methodology, it is considered a research series at this time.
Table 1: Fourth Quarter Average Domestic Fares from
Year-to-Year
Fares based on
domestic itinerary fares, round-trip or one-way for which no return is
purchased.
Averages do not
include frequent flyer fares.
Excel | CSV
1995 |
288 |
|
1996 |
278 |
-3.3 |
1997 |
294 |
5.5 |
1998 |
316 |
7.7 |
1999 |
318 |
0.6 |
2000 |
340 |
7.0 |
2001 |
300 |
-11.8 |
2002 |
309 |
3.0 |
2003 |
316 |
2.2 |
2004 |
297 |
-5.9 |
2005 |
315 |
5.9 |
2006 |
318 |
1.1 |
2007 |
331 |
4.0 |
Source:
Bureau of Transportation Statistics
Note:
Percent change based on unrounded numbers
Table 2: Average Domestic Airline Fares and Air Travel
Price Index Since First Quarter 2006
Percent Change by
Quarter
Fares based on
domestic itinerary fares, round-trip or one-way for which no return is
purchased.
ATPI 1Q 1995=100
Excel | CSV
First
Quarter 2006 |
323 |
2.7 |
114.6 |
2.7 |
Second
Quarter 2006 |
342 |
5.6 |
120.6 |
5.3 |
Third
Quarter 2006 |
330 |
-3.4 |
117.4 |
-2.6 |
Fourth
Quarter 2006 |
318 |
-3.6 |
114.0 |
-2.9 |
First
Quarter 2007 |
318 |
-0.1 |
114.6 |
0.5 |
Second
Quarter 2007 |
326 |
2.4 |
117.8 |
2.9 |
Third
Quarter 2007 |
328 |
0.7 |
118.8 |
0.8 |
Fourth
Quarter 2007 |
331 |
1.0 |
118.7 |
-0.1 |
Source:
Bureau of Transportation Statistics
*
Average fare numbers were revised from second-quarter 2007 press release issued
on Oct. 24, 2007
Note:
Quarter-to-quarter changes may be affected by seasonal factors.
Note:
Percent change based on unrounded numbers
Table 3: Highest and Lowest Average Domestic Fares Fourth
Quarter 2007
Top 100 Airports
Based on Passenger Enplanements
Fares based on
domestic itinerary fares, round-trip or one-way for which no return is
purchased.
Averages do not
include frequent flyer fares.
Excel | CSV
|
Highest Average Fares |
|
1 |
Anchorage, AK |
539 |
2 |
Cincinnati, OH |
532 |
3 |
San Francisco, CA |
428 |
4 |
Madison, WI |
426 |
5 |
Knoxville, TN |
425 |
|
Average
Fare at All Airports |
331 |
|
Lowest Average Fares |
|
1 |
Hilo, HI |
130 |
2 |
Lihue (Kauai), HI |
160 |
3 |
Kona, HI |
178 |
4 |
Kahului (Maui), HI |
183 |
5 |
Dallas Love, TX |
200 |
Source:
Bureau of Transportation Statistics
Table 4: Top Five Fourth Quarter Average Domestic Fare Increases and
Decreases, 2006-2007
Top 100 Airports by Passenger
Enplanements
Fares based on
domestic itinerary fares, round-trip or one-way for which no return is
purchased.
Averages do not
include frequent flyer fares.
Excel | CSV
|
Largest Increases |
|
|
|
1 |
Houston Bush, TX |
342 |
397 |
16.2 |
2 |
Washington Reagan National |
337 |
381 |
13.3 |
3 |
Boston, MA |
328 |
372 |
13.2 |
4 |
Washington Dulles |
361 |
404 |
11.9 |
5 |
Honolulu, HI |
241 |
268 |
11.6 |
|
Average
Fare at All Airports |
318 |
331 |
4.0 |
|
Largest Decreases |
|
|
|
1 |
Charleston, SC |
460 |
375 |
-18.5 |
2 |
White Plains, NY |
326 |
291 |
-10.8 |
3 |
Wichita, KS |
374 |
349 |
-6.7 |
4 |
Memphis, TN |
394 |
374 |
-5.2 |
5 |
Columbus, OH |
295 |
281 |
-4.6 |
Source:
Bureau of Transportation Statistics
Note:
Percent change based on unrounded numbers
Table 5: Top Five Average Domestic Fare Increases and Decreases, 1995-2007
Top 100 Airports by Passenger Enplanements
Fares based on
domestic itinerary fares, round-trip or one-way for which no return is
purchased.
Averages do not
include frequent flyer fares.
Excel | CSV
|
Largest Increases |
|
|
|
1 |
Lihue (Kauai), HI |
40 |
160 |
296.4 |
2 |
Kona, HI |
46 |
178 |
283.9 |
3 |
Kahului (Maui), HI |
50 |
183 |
266.7 |
4 |
Hilo, HI |
41 |
130 |
221.8 |
5 |
Dallas Love, TX |
76 |
200 |
162.6 |
|
Average
Fare at All Airports |
288 |
331 |
15.0 |
|
Largest Decreases |
|
|
|
1 |
White Plains, NY |
476 |
291 |
-38.9 |
2 |
Manchester, NH |
427 |
298 |
-30.4 |
3 |
Akron/Canton,
OH |
367 |
272 |
-25.9 |
4 |
Flint, MI |
369 |
282 |
-23.8 |
5 |
Providence, RI |
394 |
307 |
-22.2 |
Source:
Bureau of Transportation Statistics
Note:
Percent change based on unrounded numbers
Table 6: Percent Changes to 2007 in Average Fares From Fourth Quarter Each Year Since 1995
U.S.-Origin Itineraries, Fourth Quarter to Fourth Quarter
Fares based on
domestic itinerary fares, round-trip or one-way for which no return is
purchased.
Averages do not
include frequent flyer fares.
Excel | CSV
|
2007 |
|
331 |
4.0 |
2006 |
1 |
318 |
5.1 |
2005 |
2 |
315 |
11.3 |
2004 |
3 |
297 |
4.8 |
2003 |
4 |
316 |
7.1 |
2002 |
5 |
309 |
10.3 |
2001 |
6 |
300 |
-2.7 |
2000 |
7 |
340 |
4.0 |
1999 |
8 |
318 |
4.6 |
1998 |
9 |
316 |
12.7 |
1997 |
10 |
294 |
18.8 |
1996 |
11 |
278 |
14.9 |
1995 |
12 |
288 |
Source:
Bureau of Transportation Statistics
Note:
Percent change based on unrounded numbers
Table 7: Percent Changes to 2007 in the Air Travel Price
Index From Fourth Quarter Each Year Since 1995
U.S.-Origin Itineraries, Fourth Quarter to Fourth Quarter
Excel | CSV
4.1 |
2006 |
1 |
6.4 |
2005 |
2 |
16.1 |
2004 |
3 |
11.4 |
2003 |
4 |
13.3 |
2002 |
5 |
15.4 |
2001 |
6 |
6.4 |
2000 |
7 |
16.7 |
1999 |
8 |
19.8 |
1998 |
9 |
10.1 |
1997 |
10 |
19.5 |
1996 |
11 |
20.0 |
1995 |
12 |
Source:
Bureau of Transportation Statistics
Table 8: Year-to-Year Changes in the Air Travel
Price Index (ATPI) Since 1995
U.S.-Origin
Itineraries Fourth Quarter to Fourth Quarter (First
Quarter 1995 = 100)
Excel | CSV
1995 |
99.0 |
|
1996 |
99.3 |
0.4 |
1997 |
107.8 |
8.6 |
1998 |
99.1 |
-8.1 |
1999 |
101.7 |
2.7 |
2000 |
111.6 |
9.7 |
2001 |
102.9 |
-7.8 |
2002 |
104.7 |
1.8 |
2003 |
106.6 |
1.8 |
2004 |
102.2 |
-4.1 |
2005 |
111.5 |
9.1 |
2006 |
114.0 |
2.2 |
2007 |
118.7 |
4.1 |
Source: Bureau of Transportation Statistics
Table 9: Top Five Fourth Quarter
Air Travel Price Index Increases and Decreases, 2006-2007
Top 85 Air Travel
Markets
Air Travel Price
Index Percent Change, Fourth Quarter 2006 to Fourth Quarter 2007
(First Quarter 1995
= 100)
Excel | CSV
|
Largest Increases |
|
|
|
1 |
Houston, TX |
111.7 |
124.0 |
11.0 |
2 |
Charlotte, NC |
109.9 |
121.5 |
10.6 |
3 |
Buffalo/Niagara, NY |
101.3 |
111.4 |
10.0 |
4 |
Boston, MA |
105.9 |
115.3 |
8.9 |
5 |
Washington, DC |
108.0 |
117.0 |
8.3 |
|
ATPI for All
U.S. Origins |
114.0 |
118.7 |
4.1 |
|
Largest Decreases |
|
|
|
1 |
Charleston, SC |
128.3 |
114.4 |
-10.8 |
2 |
Savannah, GA |
120.3 |
116.4 |
-3.3 |
3 |
Anchorage, AK |
155.2 |
151.7 |
-2.3 |
4 |
Memphis, TN |
110.8 |
108.5 |
-2.1 |
5 |
Kona, HI |
149.9 |
147.7 |
-1.5 |
Source: Bureau of Transportation Statistics
Table 10: Top Five Air
Travel Price Index Increases and Decreases (Smallest Increases), 1995-2007
Top 85 Air Travel
Markets
Air Travel Price
Index Percent Change, Fourth Quarter 1995 to Fourth Quarter 2007
(First Quarter 1995
= 100)
Excel | CSV
|
Largest Increases |
|
|
|
1 |
Long Beach, CA |
59.1 |
167.1 |
182.9 |
2 |
Lihue (Kauai), HI |
102.1 |
183.3 |
79.4 |
3 |
Burbank/Glendale/Pasadena, CA |
95.7 |
166.7 |
74.1 |
4 |
Phoenix, AZ |
80.2 |
125.9 |
57.1 |
5 |
Kona, HI |
98.5 |
147.7 |
49.9 |
|
ATPI for All
U.S. Origins |
99.0 |
118.7 |
20.0 |
|
Largest Decreases/Smallest Increases |
|
|
|
1 |
Richmond, VA |
102.9 |
101.3 |
-1.6 |
2 |
Manchester, NH |
95.6 |
96.6 |
1.1 |
3 |
Baltimore, MD |
106.0 |
112.0 |
5.7 |
4 |
Denver, CO |
97.6 |
103.8 |
6.5 |
5 |
Rochester, NY |
99.5 |
106.0 |
6.5 |
Source: Bureau of Transportation Statistics
For air fares for the following airports, go to http://www.bts.gov/xml/atpi/src/index.xml:
Multiple airport areas for which a
single average fare calculation is available are: Boston,
Chicago, Dallas-Fort Worth, Houston,
Los Angeles, New York,
San Francisco and Washington,
DC.
Airports covered by average fare
calculations are:
Alabama: Birmingham
Alaska: Anchorage
Arizona: Phoenix, Tucson
Arkansas: Little Rock
California: Burbank, Long Beach,
Los Angeles Intl, Oakland, Ontario/San Bernardino, Sacramento,
San Diego, San
Francisco, San Jose,
Santa Ana (Orange
County)
Colorado: Colorado Springs,
Denver
Connecticut: Hartford
District of Columbia: Dulles, Reagan National
Florida: Ft. Lauderdale,
Ft. Myers,
Jacksonville, Miami,
Orlando, Pensacola, Tampa, West
Palm Beach
Georgia: Atlanta
Hawaii: Honolulu, Hilo,
Kahului (Maui), Kona, Lihue (Kauai)
Idaho: Boise
Illinois: Chicago
Midway, Chicago O'Hare
Indiana: Indianapolis
Iowa: Des Moines
Kansas: Wichita
Kentucky: Louisville
Louisiana: New Orleans
Maine: Portland
Maryland: Baltimore
Massachusetts: Boston
Michigan: Detroit, Grand
Rapids, Flint
Minnesota: Minneapolis/St. Paul
Mississippi: Jackson/Vicksburg
Missouri: Kansas City, St.
Louis
Nebraska: Omaha
Nevada: Las Vegas, Reno
New Hampshire: Manchester
New Jersey: Newark
New Mexico: Albuquerque
New York: Albany, Buffalo,
Islip, New York
JFK, New York LaGuardia, Rochester,
Syracuse, White
Plains
North Carolina: Charlotte, Greensboro,
Raleigh/Durham
Ohio: Akron/Canton, Cincinnati,
Cleveland, Columbus,
Dayton
Oklahoma: Oklahoma City,
Tulsa
Oregon: Portland
Pennsylvania: Harrisburg, Philadelphia,
Pittsburgh
Rhode Island: Providence
South Carolina: Charleston
Tennessee: Knoxville, Memphis,
Nashville
Texas: Austin, Dallas Love, Dallas/Ft. Worth, El Paso, Houston
Bush, Houston Hobby, San Antonio
Utah: Salt Lake City
Vermont: Burlington
Virginia: Norfolk, Richmond
Washington :Seattle, Spokane
Wisconsin: Madison, Milwaukee
Puerto Rico: San Juan
For the ATPI for
the following markets, go to http://www.bts.gov/xml/atpi/src/index.xml:
Alabama: Birmingham Alaska: Anchorage Arizona: Phoenix,
Tucson Arkansas: Little
Rock California: Burbank,
Greater Los Angeles, Long Beach, Los Angeles, Oakland, Ontario,
Sacramento, San Diego, San Francisco, San Jose, Santa Ana
(Orange County) Colorado: Colorado
Springs, Denver Connecticut: Hartford District
of Columbia: Washington,
DC (Dulles and Reagan National combined) Florida: Ft.
Lauderdale, Ft.
Myers, Jacksonville,
Miami, Orlando, Tampa,
West Palm Beach Georgia : Atlanta,
Savannah Hawaii: Honolulu,
Kahului (Maui), Kona, Lihue (Kauai) Idaho: Boise Illinois: Chicago
(Midway and O’Hare combined) Indiana: Indianapolis Iowa: Des
Moines Kentucky: Louisville Louisiana: New
Orleans Maryland: Baltimore Massachusetts: Boston Michigan: Detroit,
Grand Rapids Minnesota: Minneapolis/St.
Paul Missouri: Kansas
City, St. Louis Nebraska: Omaha Nevada: Las Vegas,
Reno New Hampshire: Manchester New
Jersey: New York/Newark New
Mexico: Albuquerque New
York: Albany,
Buffalo, Long
Island, New York/Newark, Rochester,
Syracuse North
Carolina: Charlotte,
Greensboro/High Point, Raleigh/Durham Ohio: Cincinnati,
Cleveland, Columbus,
Dayton Oklahoma: Oklahoma
City, Tulsa Oregon: Portland Pennsylvania: Philadelphia,
Pittsburgh Rhode
Island: Providence South
Carolina: Charleston Tennessee: Memphis,
Nashville Texas: Austin,
Dallas/Ft. Worth, El Paso, Houston,
San Antonio Utah: Salt
Lake City Virginia: Norfolk,
Richmond Washington: Seattle,
Spokane Wisconsin: Milwaukee Puerto
Rico: San
Juan
Brief Explanation of
the ATPI
The ATPI is based on fares paid by
travelers and draws its data from the BTS Passenger Origin and Destination
Survey. Through this survey, BTS
collects information from the airlines on a 10-percent sample of airline
tickets. Each ticket sold is assigned an
identification number, and if this number ends in 0, the ticket is in the
sample.
The index measures the aggregate
change in the cost of itineraries originating in the United
States , whether the destinations are
domestic or international, but only for U.S. carriers (excluding charter air travel). The ATPI is based on the changes in
the price of individual itineraries, that is, round trips or one-way trips for
which no return trip is purchased, and the relative value of each itinerary,
for the set of matched itineraries.
The index uses the second quarter
of 1995 as the reference point (expressed as the number 100) against which all
subsequent quarterly prices are measured. ATPI values below 100 represent overall “cost of flying” levels less
than those in the second quarter of 1995, while values above 100 represent cost
of flying levels that exceed those of the second quarter of 1995. ATPI levels can be used to compute percentage
changes in overall fare costs between any two quarters in an ATPI series.
Unlike many other price index estimates,
the ATPI is not based on a fixed “market basket” of air travel services. Rather, all of the data from the Passenger
Origin and Destination (O&D) Survey are fed into the estimation system each
quarter, and this collection of itineraries varies from one quarter to the
next. New entry, including routes and
carriers, will not be included in the ATPI calculations until it has been
present in the O&D Survey for two consecutive quarters.
For price
comparison purposes, itineraries flown in each quarter are “matched up” with
identical or very similar itineraries flown in other quarters. A price index formula is then used to compute
aggregate index estimates such as those that appear in this release.
The fares
reported in the O&D Survey include taxes, so the ATPI values reflect
changes in tax rates as well as changes in fares received by the airlines. The
ATPI values in this release are not adjusted for seasonality, so some movements
in the series are due to seasonal variations in airfares.
The ATPI differs from the Bureau of
Labor Statistics’ (BLS) airfare index, a component of the Consumer Price Index. The BLS index is based on fares
advertised through SABRE, a leading computerized airline ticket reservation
system, while the ATPI uses actual fares paid by travelers. Since a growing number of tickets are
purchased through the internet at discounted prices not listed with SABRE, the
ATPI does not show the same levels of increases as the BLS index.
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