Average Third-Quarter Air Fares Fell 0.8 Percent from 2006; Top 100 Airports: Highest Fare in Cincinnati, Lowest Fare at Lihue, Hawaii
PDF
|
Contact |
BTS 5-08
Dave Smallen
202-366-5568 |
|
Wednesday, January 30, 2008 - Average
air fares in the third quarter of 2007 were down 0.8
percent from the third quarter of 2006 and remained 2.9 percent below their
pre-9/11 high for any third quarter (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 third quarter
of 2007 of $328 was the highest average fare since the third quarter of 2006 (Table
2). The third-quarter 2007 average fare
was up 10.5 percent from the post-9/11 third-quarter low of $297 in 2004.
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 third quarter rose 0.7 percent from the second-quarter
2007 average of $326 (Table 2). Quarter-to-quarter changes may be affected by
seasonal factors.
Of the top 100 airports based on
originating passengers, the highest third-quarter
average fares were in Cincinnati;
followed by Anchorage, AK;
Greenville/Spartanburg, SC; Knoxville, TN;
and Grand Rapids, MI. The lowest fares in the top 100 airports were
at three Hawaii airports followed
by Dallas Love; and Islip (Long
Island), NY (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 third quarter among the 100 largest airports, ranked
by originating passengers, was 12.6 percent in Cincinnati, followed by Salt Lake City; Dallas
Love; New York JFK; and Hartford, CT (Table 4).
The biggest year-to-year average decrease was 22.8 percent
in Charleston, SC, followed by Columbus, OH; Kona, HI; Memphis, TN; and Greensboro/High Point, NC (Table
4).
Four
of the five largest average fare increases from the third quarter of 1995 to the third 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 third quarter of 1995 to the third quarter of 2007 was 36.7 percent in Manchester, NH. The other top five fare index decreases over
this period took place at Providence, RI; Akron/Canton, OH; Flint, MI; and Buffalo, NY (Table 5).
The Air Travel Price Index (ATPI)
A
separate measure of fares, the BTS Air Travel Price Index (ATPI) was up 1.2
percent from the third quarter of 2006 to the
highest third-quarter level recorded in the 13 years of the ATPI (Table 8) (1995
1st quarter = 100).
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
1.2 percent rise in the ATPI from the third quarter of 2006 to the third
quarter of 2007 follows last year’s rise of 7.5 percent from the third quarter of
2005, the second largest third quarter year-to-year gain in the index’s history
(Table 8).
The
ATPI rose 0.8 percent from the second quarter to the third 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 third quarter among the 85 largest
airline markets, ranked by passengers, was 6.4 percent in Charlotte, NC, followed by Cincinnati; Hartford, CT; Boston; and Salt Lake City (Table 9).
The biggest year-to-year ATPI decrease for the third quarter
was 15.6 percent for trips originating in Charleston, SC; followed by Kona, HI; Greensboro/High Point, NC; Columbus, OH; and Birmingham, AL (Table 9).
The largest fare index increase from the third quarter of
1995 to the third quarter of 2007 was 99.9 percent in Long
Beach, CA. The other top ATPI
increases over this period took place at Lihui (Kauai), HI; Burbank/Glendale/Pasadena, CA; Kona, HI;
and Anchorage, AK
(Table 10).
The only three third-quarter 12-year fare index decreases were
in Denver; Manchester, NH; and Richmond, VA. The two markets with the smallest
increases were Islip (Long
Island), NY; and Minneapolis/St. Paul (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. Fourth-quarter 2007 average fare data and the
ATPI will be released on April 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: Third 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 |
2.6 |
1996 |
270 |
-6.3 |
1997 |
283 |
4.7 |
1998 |
316 |
11.7 |
1999 |
318 |
0.6 |
2000 |
337 |
6.1 |
2001 |
304 |
-10.0 |
2002 |
304 |
0.1 |
2003 |
312 |
2.8 |
2004 |
297 |
-5.1 |
2005 |
306 |
3.2 |
2006 |
330 |
7.9 |
2007 |
328 |
-0.8 |
Source:
Bureau of Transportation Statistics
Table 2: Average Domestic Airline Fares and Air Travel
Price Index Since Fourth Quarter 2005
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
Fourth
Quarter 2005 |
319 |
2.9 |
111.5 |
2.2 |
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 |
Source:
Bureau of Transportation Statistics
*
Average fare numbers were revised from second-quarter 2007 press release issued
on Oct. 24, 2007
Table 3: Highest and Lowest Average Domestic Fares Third
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 |
Cincinnati, OH |
576 |
2 |
Anchorage, AK |
467 |
3 |
Greenville/Spartanburg, SC |
465 |
4 |
Knoxville TN |
445 |
5 |
Grand Rapids, MI |
441 |
|
Average
Fare at All Airports |
328 |
|
Lowest Average Fares |
|
1 |
Lihue (Kauai), HI |
155 |
2 |
Kona, HI |
180 |
3 |
Kahului (Maui), HI |
186 |
4 |
Dallas Love, TX |
199 |
5 |
Islip, NY |
217 |
Source:
Bureau of Transportation Statistics
Table 4: Top Five Third 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 |
Cincinnati, OH |
511 |
576 |
12.6 |
2 |
Salt Lake City, UT |
319 |
344 |
7.9 |
3 |
Dallas Love, TX |
185 |
199 |
7.4 |
4 |
New York JFK, NY |
325 |
346 |
6.5 |
5 |
Hartford, CT |
341 |
363 |
6.5 |
|
Average
Fare at All Airports |
330 |
328 |
-0.8 |
|
Largest Decreases |
|
|
|
1 |
Charleston, SC |
475 |
367 |
-22.7 |
2 |
Columbus, OH |
323 |
277 |
-14.1 |
3 |
Kona, HI |
206 |
180 |
-12.6 |
4 |
Memphis, TN |
419 |
382 |
-8.7 |
5 |
Greensboro/High
Point, NC |
412 |
377 |
-8.4 |
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 |
Kona, HI |
45 |
180 |
298.6 |
2 |
Kahului (Maui), HI |
48 |
186 |
284.6 |
3 |
Lihue (Kauai), HI |
40 |
155 |
283.5 |
4 |
Dallas Love, TX |
76 |
199 |
160.5 |
5 |
Honolulu, HI |
106 |
256 |
141.8 |
|
Average
Fare at All Airports |
288 |
328 |
13.6 |
|
Largest Decreases |
|
|
|
1 |
Manchester, NH |
462 |
292 |
-36.7 |
2 |
Providence, RI |
421 |
294 |
-30.1 |
3 |
Akron/Canton, OH |
389 |
277 |
-28.7 |
4 |
Flint, MI |
407 |
291 |
-28.4 |
5 |
Buffalo/Niagara, NY |
357 |
261 |
-26.9 |
Source:
Bureau of Transportation Statistics
Note:
Percent change based on unrounded numbers
Table 6: Percent Changes to 2007 in Average Fares
From Third Quarter Each Year Since 1995
U.S.-Origin Itineraries, Third Quarter to Third 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 |
|
328 |
-0.8 |
2006 |
1 |
330 |
7.1 |
2005 |
2 |
306 |
10.5 |
2004 |
3 |
297 |
4.9 |
2003 |
4 |
312 |
7.9 |
2002 |
5 |
304 |
7.9 |
2001 |
6 |
304 |
-2.9 |
2000 |
7 |
337 |
3.0 |
1999 |
8 |
318 |
3.7 |
1998 |
9 |
316 |
15.8 |
1997 |
10 |
283 |
21.2 |
1996 |
11 |
270 |
13.6 |
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 Third Quarter Each Year Since 1995
U.S.-Origin Itineraries, Third Quarter to Third Quarter
Excel | CSV
1.2 |
2006 |
1 |
8.8 |
2005 |
2 |
15.8 |
2004 |
3 |
12.6 |
2003 |
4 |
14.9 |
2002 |
5 |
12.0 |
2001 |
6 |
9.0 |
2000 |
7 |
18.3 |
1999 |
8 |
19.4 |
1998 |
9 |
16.2 |
1997 |
10 |
20.8 |
1996 |
11 |
18.4 |
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 Third Quarter to Third Quarter (First
Quarter 1995 = 100)
Excel | CSV
1995 |
100.4 |
|
1996 |
98.4 |
-2.0 |
1997 |
102.2 |
3.9 |
1998 |
99.5 |
-2.7 |
1999 |
100.4 |
1.0 |
2000 |
109.0 |
8.5 |
2001 |
106.1 |
-2.7 |
2002 |
103.4 |
-2.5 |
2003 |
105.5 |
2.1 |
2004 |
102.6 |
-2.8 |
2005 |
109.2 |
6.4 |
2006 |
117.4 |
7.5 |
2007 |
118.8 |
1.2 |
Source: Bureau of Transportation Statistics
Table 9: Top Five Third Quarter
Air Travel Price Index Increases and Decreases, 2006-2007
Top 85 Air Travel
Markets
Air Travel Price
Index Percent Change, Third Quarter 2006 to Third Quarter 2007
(First Quarter 1995
= 100)
Excel | CSV
|
Largest Increases |
|
|
|
1 |
Charlotte, NC |
114.1 |
121.3 |
6.4 |
2 |
Cincinnati, OH |
132.2 |
140.3 |
6.1 |
3 |
Hartford, CT |
109.4 |
115.6 |
5.6 |
4 |
Boston, MA |
108.7 |
114.0 |
4.9 |
5 |
Salt Lake City, UT |
137.7 |
143.9 |
4.5 |
|
ATPI for All
U.S. Origins |
117.4 |
118.8 |
1.2 |
|
Largest Decreases |
|
|
|
1 |
Charleston, SC |
134.5 |
113.5 |
-15.6 |
2 |
Kona, HI |
162.0 |
152.6 |
-5.8 |
3 |
Greensboro/High Point, NC |
149.8 |
141.9 |
-5.3 |
4 |
Columbus, OH |
125.6 |
119.2 |
-5.1 |
5 |
Birmingham, AL |
122.2 |
116.6 |
-4.6 |
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, Third Quarter 1995 to Third Quarter 2007
(First Quarter 1995
= 100)
Excel | CSV
|
Largest Increases |
|
|
|
1 |
Long Beach, CA |
86.7 |
173.3 |
99.9 |
2 |
Lihue (Kauai), HI |
102.5 |
193.5 |
88.7 |
3 |
Burbank/Glendale/Pasadena, CA |
101.2 |
166.1 |
64.1 |
4 |
Kona, HI |
100.4 |
152.6 |
52.0 |
5 |
Anchorage, AK |
107.7 |
157.5 |
46.2 |
|
ATPI for All
U.S. Origins |
100.4 |
118.8 |
18.4 |
|
Largest Decreases/Smallest Increases |
|
|
|
1 |
Denver, CO |
107.0 |
104.7 |
-2.1 |
2 |
Manchester, NH |
96.3 |
94.5 |
-1.9 |
3 |
Richmond, VA |
100.2 |
100.2 |
-0.1 |
4 |
Long Island, NY |
99.6 |
103.6 |
4.1 |
5 |
Minneapolis/St. Paul, MN |
102.5 |
107.9 |
5.2 |
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, Savannah
Hawaii: Honolulu, 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
North Carolina: Charlotte, Greensboro, Raleigh/Durham
Ohio: Akron/Canton, Cincinnati, Cleveland, Columbus, Dayton
Oklahoma: Oklahoma City, Tulsa
Oregon: Portland
Pennsylvania: Philadelphia, Pittsburgh
Rhode Island: Providence
South Carolina: Charleston, Greenville/Spartanburg
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.
|