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Average 4th-Quarter Domestic Air Fares Drop from 3rd Quarter; Top 100 Airports: Highest Fare in Cincinnati, Lowest Fare at Dallas Love
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Contact |
BTS 21-09
Dave Smallen
202-366-5568 |
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Wednesday, May
6, 2009 - Average domestic air fares in the fourth quarter of 2008 of
$347 were 3.7 percent lower than the all-time quarterly high set in the third
quarter but were still the highest for any fourth quarter on record (Tables 1,
2), 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 3.7 percent drop from
the record high average fares of $360 in the July-to-September quarter to $347
in the October-to-December period was the biggest third quarter to fourth quarter decline in the 14 years for
which BTS has records (Table 2).
This decline was the third time in
14 years that fares have fallen from the third quarter to the fourth
quarter. In the other 11 years, average
fares rose from the third quarter to the fourth quarter. See BTS Air Fare web page for historic data. Quarter-to-quarter changes may be affected by seasonal
factors.
The $347 fourth-quarter 2008 average
fares represented a lower rate of increase than inflation both from the fourth
quarter of 1995, the first year of BTS records and from the previous high for
fourth-quarter fares set in 2000. In the
14 years after 1995 air fares rose 20.4 percent compared to a 37 percent
inflation rate. From 2000, when the
previous fourth-quarter high was set, fares rose 1.9 percent compared to a 20.8
percent inflation rate (Table 6).
Since
2004, average fares have been increasing faster than inflation. Fourth-quarter 2008 average fares rose 16.6 percent from the
post-9/11 fourth-quarter low of $297 in 2004,
exceeding the inflation rate of 10.5 percent (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.
Spirit Airlines data for the five quarters from the fourth
quarter of 2007 to the fourth quarter of 2008 are not included in this release because
the airline is updating its reports. 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,
2008 press release were based on incorrect data. The
data available on the BTS website for the second and third quarters of 2008
have been revised. Revised Spirit Airlines data for the fourth quarter 2007 and
the first quarter 2008 have yet to be received. See http://www.bts.gov/xml/atpi/src/index.xml.
Data for the second and third quarters of 2008
have been revised from previous releases to include data from airlines whose
reports were withheld because of pending confidentiality motions. The motions have been resolved.
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 fourth-quarter average fares were in Cincinnati followed
by Grand Rapids, MI; Knoxville TN;
Greenville/Spartanburg, SC and Minneapolis/St. Paul. The lowest fares in the top 100 airports were
at Dallas Love, TX followed by Long
Beach, CA; Las Vegas; Orlando, FL and Burbank, 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 increase
for the fourth quarter among the 100 largest airports, ranked by 2007 originating
passengers, was 32.8 percent in Newburgh, NY followed by Dallas Love, TX; Minneapolis/St. Paul; Islip, NY and
Chicago Midway (Table 4).
The biggest year-to-year average decrease was 8
percent in Burlington, VT followed
by San Francisco; Long
Beach, CA; Richmond, VA and
Greensboro/High Point, NC (Table 4).
The largest average fare increase from the fourth
quarter of 1995 to the fourth quarter of 2008 was 215.5 percent at Dallas
Love, TX followed by Lubbock TX; Colorado Springs, CO; El Paso, TX and Houston Hobby (Table 5).
The
largest average fare decrease from the fourth quarter of 1995 to the fourth quarter
of 2008 was 36.6 percent in White Plains, NY. The
other top average fare decreases over this period took place at Manchester, NH; Richmond, VA;
Akron/Canton, OH and Rochester, NY (Table 5).
The Air Travel Price Index (ATPI)
A
separate measure of fares, the BTS Air Travel Price Index (ATPI) dropped 2.9
percent in the fourth quarter from its previous all-time high in the third
quarter (Table 2). See http://www.bts.gov/xml/atpi/src/datadisp.xml?t=1 for historic data.
The
ATPI was up 6.8 percent from the fourth quarter of 2007 to the fourth quarter of 2008 (Table 8).
The
ATPI is up 13.6 percent from its pre-9/11 fourth-quarter high set in 2000 and
up 24 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 air fares 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 air fares 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, 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.
Excluding Alaska,
Hawaii, and Puerto
Rico, the largest year-to-year fare index increase for the fourth quarter
among the 85 largest airline markets, ranked by passengers, was 21.1 percent in
Islip, NY
followed by Minneapolis/St. Paul; Manchester, NH;
Reno, NV and
Cincinnati (Table 9).
There were only two year-to-year
ATPI decreases: 0.8 percent in Greensboro/High Point, NC and by 0.3 percent in Richmond,
VA. The
smallest year-to-year increases for the fourth quarter were for trips
originating in Denver, New
Orleans and Salt Lake City
(Table 9).
The largest fare index increase
from the fourth quarter of 1995 to the fourth quarter of 2008 was 199.3 percent
in Long Beach, CA. The other top ATPI increases over this period
took place at Burbank, CA;
Phoenix; Las
Vegas and Tucson, AZ
(Table 10).
The only ATPI decrease for the
14-year 1995-to-2008 period was 1.8 percent in Richmond,
VA. The smallest increase was 8.7 percent in Denver,
CO with the other smallest increases in Detroit,
MI; Rochester,
NY and Manchester,
NH (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. First-quarter 2009 average fare data and the
ATPI will be released on July 29.
Table 1: Fourth 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 |
288 |
|
|
|
|
1996 |
278 |
-3.3 |
3.3 |
-3.3 |
3.3 |
1997 |
294 |
5.5 |
1.7 |
2.0 |
5.1 |
1998 |
316 |
7.7 |
1.6 |
9.9 |
6.8 |
1999 |
318 |
0.6 |
2.7 |
10.5 |
9.6 |
2000 |
340 |
7.0 |
3.4 |
18.2 |
13.4 |
2001 |
300 |
-11.8 |
1.6 |
4.2 |
15.1 |
2002 |
309 |
3.0 |
2.4 |
7.3 |
17.9 |
2003 |
316 |
2.2 |
1.9 |
9.7 |
20.1 |
2004 |
297 |
-5.9 |
3.3 |
3.3 |
24.0 |
2005 |
315 |
5.9 |
3.4 |
9.4 |
28.2 |
2006 |
318 |
1.1 |
2.5 |
10.5 |
31.5 |
2007 |
332 |
4.4 |
4.1 |
15.4 |
36.8 |
2008 |
347 |
4.4 |
0.1 |
20.4 |
37.0 |
Source: Bureau of
Transportation Statistics
* Rate calculated using
Bureau of Labor Statistics Consumer Price Index.
Note: Percent change based on
unrounded numbers
Table 2: Average Domestic
Airline Fares and Air Travel Price Index since First Quarter 2007
Percent
Change by Quarter
Fares
based on U.S. domestic itinerary fares,
round-trip or one-way for which no return is purchased. Averages do not include
frequent flyer fares. ATPI 1Q 1995=100
Excel | CSV
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 |
332 |
1.4 |
118.7 |
-0.1 |
First
Quarter 2008 |
336 |
1.3 |
121.4 |
2.3 |
Second
Quarter 2008 |
348 |
3.5 |
126.3 |
4.1 |
Third
Quarter 2008 |
360 |
3.4 |
130.6 |
3.4 |
Source: Bureau of
Transportation Statistics
* Fourth quarter 2007 and
first quarter 2008 average fare numbers were revised from the first quarter
2008 press release issued on July 23, 2008. Second and third quarter 2008 average fare numbers were revised from the
third quarter 2008 press release issued on Jan. 28, 2009.
Note: Percent change based on
unrounded numbers
Note: Quarter-to-quarter
changes may be affected by seasonal factors.
Table 3: Highest and Lowest U.S. Domestic Average Itinerary Fares Fourth Quarter 2008
Top 100 Airports*
Based on 2007 U.S. Originating Domestic Passengers
Fares based on U.S. 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 |
554 |
2 |
Grand Rapids, MI |
459 |
3 |
Knoxville, TN |
447 |
4 |
Greenville/Spartanburg,
SC |
441 |
5 |
Minneapolis/St.
Paul, MN |
435 |
|
Average
Fare at All Airports |
347 |
|
Lowest Average Fares |
|
1 |
Dallas Love, TX |
241 |
2 |
Long Beach, CA |
254 |
3 |
Las Vegas, NV |
261 |
4 |
Orlando, FL |
261 |
5 |
Burbank/Glendale/Pasadena,
CA |
266 |
Source: Bureau of
Transportation Statistics
* Not including Alaska, Hawaii or Puerto Rico
Note: Percent change based on
unrounded numbers
Table 4: Top Five U.S. Domestic Average Itinerary Fare Increases and Decreases, 2007 – 2008
Top 100 Airports*
Based on 2007 U.S. Originating Domestic Passengers
Fares based on U.S. 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 |
Newburgh, NY |
248 |
329 |
32.8 |
2 |
Dallas Love, TX |
200 |
241 |
20.1 |
3 |
Minneapolis/St.
Paul, MN |
363 |
435 |
19.9 |
4 |
Islip, NY |
242 |
286 |
18.3 |
5 |
Chicago Midway, IL |
234 |
275 |
17.8 |
|
Average
Fare at All Airports |
332 |
347 |
4.4 |
|
Largest Decreases |
|
|
|
1 |
Burlington, VT |
371 |
341 |
-8.0 |
2 |
San Francisco, CA |
428 |
405 |
-5.4 |
3 |
Long Beach, CA |
266 |
254 |
-4.9 |
4 |
Richmond, VA |
347 |
330 |
-4.8 |
5 |
Greensboro/High
Point, NC |
388 |
372 |
-4.1 |
Source: Bureau of
Transportation Statistics
* Not including Alaska, Hawaii or Puerto Rico
Note: Percent change based on
unrounded numbers
Table 5: Top Five U.S. Domestic Average Itinerary Fare Increases
and Decreases, 1995-2008
Top 100 Airports* Based on 2007 U.S. Originating Domestic Passengers
Fares based on U.S. 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 |
76 |
241 |
215.5 |
2 |
Lubbock, TX |
134 |
298 |
121.6 |
3 |
Colorado Springs, CO |
181 |
394 |
117.7 |
4 |
El Paso, TX |
159 |
331 |
108.1 |
5 |
Houston Hobby, TX |
136 |
280 |
106.6 |
|
Average Fare at All Airports |
288 |
347 |
20.4 |
|
Largest Decreases |
|
|
|
1 |
White Plains, NY |
476 |
301 |
-36.6 |
2 |
Manchester, NH |
427 |
313 |
-26.8 |
3 |
Richmond, VA |
439 |
330 |
-24.8 |
4 |
Akron/Canton, OH |
367 |
285 |
-22.4 |
5 |
Rochester, NY |
392 |
312 |
-20.5 |
Source: Bureau of Transportation Statistics
* Not including Alaska, Hawaii or Puerto Rico
Note: Percent change based on unrounded numbers
Table 6: Percent
Changes to 2008 in Domestic Average Itinerary Fares and the Inflation Rate* by
Year Since 1995
(Fourth Quarter to
Fourth Quarter for fares; Dec to Dec for inflation)
Fares based on U.S
domestic itinerary fares, round-trip or one-way for which no return is
purchased. Averages do not include frequent flyer fares.
Excel | CSV
2008 |
|
347 |
|
|
2007 |
1 |
332 |
4.4 |
0.1 |
2006 |
2 |
318 |
8.9 |
4.2 |
2005 |
3 |
315 |
10.1 |
6.8 |
2004 |
4 |
297 |
16.6 |
10.5 |
2003 |
5 |
316 |
9.7 |
14.1 |
2002 |
6 |
309 |
12.2 |
16.2 |
2001 |
7 |
300 |
15.6 |
19.0 |
2000 |
8 |
340 |
1.9 |
20.8 |
1999 |
9 |
318 |
9.0 |
24.9 |
1998 |
10 |
316 |
9.6 |
28.3 |
1997 |
11 |
294 |
18.1 |
30.3 |
1996 |
12 |
278 |
24.5 |
32.6 |
1995 |
13 |
288 |
20.4 |
37.0 |
Source: Bureau of Transportation Statistics
* Rate calculated using Bureau of Labor Statistics Consumer Price Index
Note: Percent change based on unrounded numbers
Table 7: Percent Changes to 2008 in the Air Travel Price
Index, from Each Year Since 1995
(U.S.-Origin
Itineraries, Fourth Quarter to Fourth Quarter)
Excel | CSV
6.8 |
2007 |
1 |
11.2 |
2006 |
2 |
13.6 |
2005 |
3 |
24.0 |
2004 |
4 |
19.0 |
2003 |
5 |
21.0 |
2002 |
6 |
23.2 |
2001 |
7 |
13.6 |
2000 |
8 |
24.6 |
1999 |
9 |
27.9 |
1998 |
10 |
17.6 |
1997 |
11 |
27.7 |
1996 |
12 |
28.1 |
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
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 |
2008 |
126.8 |
6.8 |
Source:
Bureau of Transportation Statistics
Table 9: Top Five Fourth Quarter Air Travel Price Index
Increases and Decreases (Smallest Increases), 2007-2008;
Top 85 Air Travel
Markets*
Air Travel Price
Index Percent Change, Fourth Quarter 2007 to Fourth Quarter 2008 (First Quarter
1995 = 100)
Excel | CSV
|
Largest Increases |
|
|
|
1 |
Long Island, NY |
110.3 |
133.6 |
21.1 |
2 |
Minneapolis/St.
Paul, MN |
105.0 |
118.9 |
13.2 |
3 |
Manchester, NH |
96.6 |
109.1 |
12.9 |
4 |
Reno, NV |
124.5 |
140.0 |
12.4 |
5 |
Cincinnati, OH |
135.8 |
152.3 |
12.2 |
|
ATPI for All U.S. Origins |
118.7 |
126.8 |
6.8 |
|
Largest Decreases/Smallest Increases |
|
|
|
1 |
Greensboro/High
Point, NC |
143.1 |
141.9 |
-0.8 |
2 |
Richmond, VA |
101.3 |
101.1 |
-0.3 |
3 |
Denver, CO |
103.8 |
106.1 |
2.2 |
4 |
New Orleans, LA |
141.6 |
144.7 |
2.2 |
5 |
Salt Lake City, UT |
139.0 |
142.1 |
2.3 |
Source: Bureau of
Transportation Statistics
* See Top 85 Market Rankings
Table 15 for Alaska, Hawaii and Puerto Rico airports
** HI, AK, PR airports are
excluded.
***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, Fourth Quarter 1995 to Fourth Quarter 2008 (First Quarter
1995 = 100)
Excel | CSV
|
Largest Increases |
|
|
|
1 |
Long Beach, CA |
59.1 |
176.8 |
199.3 |
2 |
Burbank/Glendale/Pasadena,
CA |
95.7 |
183.5 |
91.7 |
3 |
Phoenix, AZ |
80.2 |
137.4 |
71.4 |
4 |
Las Vegas, NV |
94.6 |
148.0 |
56.5 |
5 |
Tucson, AZ |
94.1 |
143.6 |
52.5 |
|
ATPI for All U.S. Origins |
99.0 |
126.8 |
28.1 |
|
Largest Decreases/Smallest Increases |
|
|
|
1 |
Richmond, VA |
102.9 |
101.1 |
-1.8 |
2 |
Denver, CO |
97.6 |
106.1 |
8.7 |
3 |
Detroit, MI |
99.9 |
110.6 |
10.7 |
4 |
Rochester, NY |
99.5 |
110.6 |
11.1 |
5 |
Manchester, NH |
95.6 |
109.1 |
14.1 |
Source:
Bureau of Transportation Statistics
* See Top 85 Market Rankings
Table 15 for Alaska, Hawaii and Puerto Rico airports
** HI, AK, PR airports are
excluded.
*** 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: Birminghamm
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
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.
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 first 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 air fares.
The ATPI differs from the Bureau of
Labor Statistics’ (BLS) air fare 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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