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Average Second-Quarter Domestic Air Fares Reach Highest
Quarterly Level; Top 100 Airports: Highest Fare in Cincinnati, Lowest Fare at Dallas
Love Field
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Contact |
BTS 51-08
Dave Smallen
202-366-5568 |
|
Wednesday, October 29, 2008 - Average
domestic air fares in the second quarter of 2008 reached the highest level of
average fares for any quarter in the 13 years measured by available data (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 second quarter was $352, exceeding the highest reported average
fare in the first quarter of 2001. See http://www.bts.gov/xml/atpi/src/avgfareseries.xml for historic data.
Average domestic air fares in the
second quarter of 2008 were up 8.1 percent from the second quarter of 2007
(Table 1) in the largest year-to-year increase since the second quarter of
2006, and average fares increased 3.0 percent above the previous April-to-June high
set in 2006 (Table 6). The second-quarter 2008 average fare was up 14.7 percent from the
post-9/11 second-quarter low of $307 in 2005
(Table 6).
Average
fares increased 18.5 percent from the second quarter
of 1995 to the second quarter of 2008 compared
to a cumulative 44.5 percent inflation rate. Second quarter 2008 fares increased 8.1
percent from the second quarter of 2007
compared to a 5.0 percent inflation rate (Table 1).
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.
Data from Spirit Airlines for the
second quarter of 2008 are not included in this release because of incorrect
submissions. Atlantic City, NJ,
is not included because Spirit operates more than 90 percent of the flights
there. The Atlantic City
average fares in the July 23 press release were based on incorrect data. The
data available on the BTS database for the Fourth Quarter of 2007 and the first
quarter of 2008 have been revised to eliminate Spirit's submissions. See http://www.bts.gov/xml/atpi/src/index.xml Spirit has been notified about the
incorrect data.
Average air fares in the second quarter of 2008 rose 4.6
percent from the first-quarter 2008 average of $336 (Table 2).
Quarter-to-quarter changes may be affected by seasonal factors.
Beginning with the first quarter 2008 release,
BTS does not include Alaska, Hawaii and Puerto
Rico airports in average fare totals and rankings.
Average fares for those airports are available on the BTS Air Fare web page: http://www.bts.gov/xml/atpi/src/index.xml
Of the top 100 airports based on originating
passengers, the highest second-quarter average fares were in Cincinnati; followed
by Greenville/Spartanburg, SC; Knoxville, TN; Madison, WI; and Grand
Rapids, MI. The lowest fares in the top 100 airports were
at Dallas Love, TX; followed by Burbank, CA; Houston
Hobby; Chicago Midway; and Oakland, CA (Table 3). See the BTS Air Fare web page for average fares for the top 100 airports.
The largest year-to-year average fare increases for
the second quarter among the 100 largest airports, ranked by 2007 originating
passengers, was 21.1 percent in Greenville/Spartanburg, SC; followed by Knoxville,
TN; Minneapolis/St. Paul; Chicago Midway; and Washington Reagan National (Table
4).
The biggest year-to-year average decrease was 3.8
percent in Charleston, SC; followed
by Salt Lake City; Austin, TX; Oakland; and Milwaukee (Table 4).
The largest average fare increase from the second
quarter of 1995 was 196.9 percent at Dallas Love, followed by Lubbock, TX; El Paso, TX; Houston
Hobby; and Las Vegas (Table
5).
The largest average
fare decrease from the second quarter of 1995 to the second quarter of 2007 was
35.1 percent in White
Plains, NY. The
other top five average fare decreases over this period took place at Manchester,
NH; Newburgh, NY; Akron/Canton, OH; and Jackson, MS (Table 5).
The Air Travel Price Index (ATPI)
A
separate measure of fares, the BTS Air Travel Price Index (ATPI) reached an
all-time high in the second quarter, up 4.1 percent from the previous high set
in the first quarter of 2008 (Table 2). See http://www.bts.gov/xml/atpi/src/datadisp.xml?t=1 for historic data.
The
ATPI was up 7.2 percent from the second quarter of 2007 to the second quarter of 2008 (Table 8).
The
ATPI is up 13.0 percent from its pre-9/11 second quarter high set in 2001 and
up 19.4 percent from its post-9/11 second quarter low set in 2003 (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 first quarter of
1995, which is the base quarter (1Q 1995=100).
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 about 40 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 largest year-to-year fare index increase for the second
quarter among the 85 largest airline markets, ranked by passengers, was 15.9
percent in Islip, NY;
followed by Buffalo/Niagara, NY; Providence, RI;
Boston; and Washington,
DC (Table 9).
There were no year-to-year ATPI decreases. The smallest
year-to-year increases for the second quarter were for trips originating in Salt
Lake City; Spokane, WA;
Oakland, CA;
Austin, TX;
and Milwaukee (Table 9).
The largest fare index increase from the second quarter of
1995 to the second quarter of 2008 was 96.8 percent in Long
Beach, CA. The other top ATPI increases over this period
took place at Burbank, CA;
Cincinnati; Ft.
Myers, FL; and Las
Vegas (Table 10).
The only second-quarter fare index decrease for the
13-year 1995-to-2008 period was 0.2 percent in Denver. The smallest increases were in Manchester,
NH; Richmond,
VA; Milwaukee;
and Detroit (Table 10).
Alaska,
Hawaii and Puerto Rico
airports have been excluded from Tables 9 and 10 of this release. Those airports are included in the total ATPI
and data about them can be found on the ATPI rankings on the BTS Air Fare web page.
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. Third-quarter 2008 average fare data and the
ATPI will be released on Jan. 28, 2009.
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: Second Quarter Average Fares 1995-2008 Compared
to Inflation Rate
Fares based on
domestic itinerary fares, round-trip or a one-way for which no return is
purchased.
Averages do not
include frequent flyer fares.
Excel | CSV
1995 |
297 |
|
|
|
|
1996 |
276 |
-7.1 |
2.8 |
-7.1 |
3.5 |
1997 |
289 |
5.0 |
2.3 |
-2.5 |
5.9 |
1998 |
301 |
4.0 |
1.7 |
1.4 |
7.7 |
1999 |
329 |
9.4 |
2.0 |
10.9 |
9.8 |
2000 |
339 |
3.0 |
3.7 |
14.2 |
13.9 |
2001 |
329 |
-3.1 |
3.2 |
10.7 |
17.6 |
2002 |
318 |
-3.3 |
1.1 |
7.1 |
18.8 |
2003 |
315 |
-1.1 |
2.1 |
5.9 |
21.3 |
2004 |
309 |
-1.6 |
3.3 |
4.2 |
25.3 |
2005 |
307 |
-0.9 |
2.5 |
3.3 |
28.5 |
2006 |
342 |
11.4 |
4.3 |
15.0 |
34.0 |
2007 |
325 |
-4.7 |
2.7 |
9.6 |
37.6 |
2008 |
352 |
8.1 |
5.0 |
18.5 |
44.5 |
Source:
Bureau of Transportation Statistics
Note:
Percent change based on unrounded numbers
*
Rate calculated using Bureau of Labor Statistics Consumer Price Index
Table 2: Average Domestic Airline Fares and Air Travel
Price Index Since Third 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
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 |
325 |
2.4 |
117.8 |
2.9 |
Third Quarter 2007 |
328 |
0.7 |
118.8 |
0.8 |
Fourth Quarter 2007 |
331 |
1.1 |
118.7 |
-0.1 |
First Quarter 2008 |
336 |
1.5 |
121.4 |
2.3 |
Second Quarter 2008 |
352 |
4.6 |
126.3 |
4.1 |
Source:
Bureau of Transportation Statistics
*
Average fare numbers for the Fourth Quarter of 2007 and the first quarter of
2008 were revised from the first-quarter 2008 press release issued on July 23, 2008
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 Second
Quarter 2008
Top 100 Airports*
Based on 2007
U.S. Originating Domestic Passengers
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 |
595 |
2 |
Greenville/Spartanburg,
SC |
568 |
3 |
Knoxville TN |
524 |
4 |
Madison, WI |
468 |
5 |
Grand Rapids, MI |
461 |
|
Average
Fare at All Airports |
352 |
|
Lowest Average Fares |
|
1 |
Dallas Love, TX |
221 |
2 |
Burbank/Glendale/Pasadena,
CA |
252 |
3 |
Houston Hobby, TX |
256 |
4 |
Chicago Midway, Il |
257 |
5 |
Oakland, CA |
257 |
Source:
Bureau of Transportation Statistics
*
Not including Alaska, Hawaii or Puerto Rico
Table 4: Top Five Average Domestic Fare Increases and Decreases, 2007-2008
Top 100 Airports*
Based on 2007
U.S. Originating Domestic Passengers
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 |
Greenville/Spartanburg,
SC |
469 |
568 |
21.1 |
2 |
Knoxville TN |
442 |
524 |
18.5 |
3 |
Minneapolis/St.
Paul, MN |
361 |
425 |
17.7 |
4 |
Chicago Midway, Il |
219 |
257 |
17.1 |
5 |
Washington Reagan National |
358 |
419 |
17.0 |
|
Average
Fare at All Airports |
325 |
352 |
8.1 |
|
Largest Decreases |
|
|
|
1 |
Charleston, SC |
433 |
417 |
-3.8 |
2 |
Salt Lake City, UT |
339 |
327 |
-3.3 |
3 |
Austin, TX |
344 |
335 |
-2.8 |
4 |
Oakland, CA |
264 |
257 |
-2.4 |
5 |
Milwaukee, WI |
328 |
326 |
-0.7 |
Source:
Bureau of Transportation Statistics
Note:
Percent change based on unrounded numbers
*
Not including Alaska, Hawaii or Puerto Rico
Table 5: Top Five Average Domestic Fare Increases and
Decreases, 1995-2008
Top 100 Airports* Based on 2007
U.S. Originating Domestic Passengers
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 |
Dallas Love, TX |
74 |
221 |
196.9 |
2 |
Lubbock, TX |
131 |
291 |
122.2 |
3 |
El Paso, TX |
161 |
312 |
93.9 |
4 |
Houston Hobby, TX |
135 |
256 |
89.5 |
5 |
Las Vegas, NV |
141 |
266 |
89.3 |
|
Average Fare at All Airports |
297 |
352 |
18.5 |
|
Largest Decreases |
|
|
|
1 |
White Plains, NY |
472 |
306 |
-35.1 |
2 |
Manchester, NH |
444 |
321 |
-27.7 |
3 |
Newburgh, NY |
375 |
278 |
-25.9 |
4 |
Akron/Canton, OH |
376 |
292 |
-22.5 |
5 |
Jackson, MS |
479 |
380 |
-20.7 |
Source: Bureau of Transportation Statistics
Note: Percent change based on unrounded
numbers
* Not including Alaska, Hawaii or Puerto Rico
Table 6: Percent
Changes to 2008 in Domestic Average Itinerary Fares and the Inflation Rate* by
Year Since 1995
(Second Quarter to Second Quarter for fares; June to June for inflation)
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
2008 |
|
352 |
|
|
2007 |
1 |
325 |
8.1 |
5.0 |
2006 |
2 |
342 |
3.0 |
7.8 |
2005 |
3 |
307 |
14.7 |
12.5 |
2004 |
4 |
309 |
13.7 |
15.3 |
2003 |
5 |
315 |
11.9 |
19.1 |
2002 |
6 |
318 |
10.7 |
21.6 |
2001 |
7 |
329 |
7.0 |
22.9 |
2000 |
8 |
339 |
3.7 |
26.9 |
1999 |
9 |
329 |
6.8 |
31.7 |
1998 |
10 |
301 |
16.9 |
34.2 |
1997 |
11 |
289 |
21.5 |
36.5 |
1996 |
12 |
276 |
27.6 |
39.6 |
1995 |
13 |
297 |
18.5 |
43.5 |
Source: Bureau of Transportation Statistics
Note: Percent change based on unrounded
numbers
* Rate calculated using Bureau of Labor
Statistics Consumer Price Index
Table 7: Percent Changes to 2008 in the Air Travel Price
Index From Second Quarter Each Year Since 1995
U.S.-Origin
Itineraries, Second Quarter to Second Quarter
Excel | CSV
7.2 |
2007 |
1 |
4.7 |
2006 |
2 |
16.8 |
2005 |
3 |
18.9 |
2004 |
4 |
19.4 |
2003 |
5 |
18.7 |
2002 |
6 |
13.0 |
2001 |
7 |
16.8 |
2000 |
8 |
23.8 |
1999 |
9 |
26.3 |
1998 |
10 |
22.1 |
1997 |
11 |
29.1 |
1996 |
12 |
24.9 |
1995 |
13 |
Source:
Bureau of Transportation Statistics
Table 8: Year-to-Year Changes in the Air Travel Price
Index (ATPI) Since 1995
U.S.-Origin Itineraries Second Quarter to Second Quarter (First Quarter 1995 = 100)
Excel | CSV
1995 |
101.12 |
|
1996 |
97.83 |
-3.3 |
1997 |
103.49 |
5.8 |
1998 |
100.00 |
-3.4 |
1999 |
102.06 |
2.1 |
2000 |
108.18 |
6.0 |
2001 |
111.77 |
3.3 |
2002 |
106.39 |
-4.8 |
2003 |
105.79 |
-0.6 |
2004 |
106.24 |
0.4 |
2005 |
108.20 |
1.8 |
2006 |
120.61 |
11.5 |
2007 |
117.83 |
-2.3 |
2008 |
126.33 |
7.2 |
Source:
Bureau of Transportation Statistics
Table 9: Top Five Second Quarter Air Travel Price Index Increases and
Decreases, 2007-2008
Top 85 Air Travel
Markets*
Air Travel Price
Index Percent Change, Second Quarter 2007 to Second Quarter 2008
(First Quarter 1995
= 100)
Excel | CSV
|
Largest Increases |
|
|
|
1 |
Islip, NY |
104.5 |
121.1 |
15.9 |
2 |
Buffalo/Niagara,
NY |
105.3 |
119.8 |
13.8 |
3 |
Providence, RI |
113.3 |
127.9 |
12.8 |
4 |
Boston, MA |
110.9 |
125.0 |
12.7 |
5 |
Washington, DC |
112.8 |
126.9 |
12.5 |
|
ATPI for All U.S. Origins |
117.8 |
126.3 |
7.2 |
|
Largest Decreases |
|
|
|
1 |
Salt Lake City, UT |
140.2 |
140.1 |
0.0 |
2 |
Spokane, WA |
115.1 |
115.7 |
0.5 |
3 |
Oakland, CA |
132.1 |
135.0 |
2.2 |
4 |
Austin, TX |
119.9 |
122.5 |
2.2 |
5 |
Milwaukee, WI |
111.3 |
114.0 |
2.4 |
Source:
Bureau of Transportation Statistics
* See Top 85
Market Rankings Table 16 for Alaska, Hawaii and Puerto Rico airports
Table 10: Top Five Air Travel Price Index Increases and Decreases (Smallest
Increases), 1995-2008
Top 85 Air Travel Markets
Air Travel Price Index Percent Change, Second Quarter
1995 to Second Quarter 2008
(First Quarter 1995 = 100)
Excel | CSV
|
Largest Increases |
|
|
|
1 |
Long Beach, CA |
88.8 |
174.7 |
96.8 |
2 |
Burbank/Glendale/Pasadena, CA |
101.4 |
176.1 |
73.6 |
3 |
Cincinnati, OH |
102.7 |
156.0 |
51.9 |
4 |
Ft. Myers, FL |
97.6 |
146.7 |
50.4 |
5 |
Las Vegas, NV |
101.0 |
147.7 |
46.3 |
|
ATPI
for All U.S. Origins |
101.1 |
126.3 |
24.9 |
|
Largest Decreases/Smallest Increases |
|
|
|
1 |
Denver, CO |
104.5 |
104.3 |
-0.2 |
2 |
Manchester, NH |
99.4 |
107.1 |
7.7 |
3 |
Richmond, VA |
101.7 |
110.6 |
8.8 |
4 |
Milwaukee, WI |
103.8 |
114.0 |
9.8 |
5 |
Detroit, MI |
100.5 |
111.1 |
10.6 |
Source:
Bureau of Transportation Statistics
* See Top 85
Market Rankings Table 15 for Alaska, Hawaii and Puerto Rico airports
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
Arizona : Phoenix, Tucson
Arkansas:: Little Rock
California:Burbank, Fresno,
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, Sarasota/Bradenton, Tampa,
West Palm Beach
Georgia: Atlanta, Savannah
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, Newburgh,
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,
Greenville/Spartanburg
Tennessee: Knoxville, Memphis,
Nashville
Texas: Austin, Dallas Love, Dallas/Ft. Worth, El Paso, Houston
Bush, Houston Hobby, Lubbock, San Antonio
Utah: Salt Lake City
Vermont: Burlington
Virginia: Norfolk, Richmond
Washington: Seattle, Spokane
Wisconsin: Madison, Milwaukee
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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