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Average First-Quarter Domestic Air Fares Rose 4.4 Percent
from 2007; Top 100 Airports: Highest Fare in Cincinnati, Lowest Fare at Atlantic City
PDF
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Contact |
BTS 36-08
Dave Smallen
202-366-5568 |
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Wednesday, July
23, 2008 - Average domestic air fares in the first quarter
of 2008 were up 4.4 percent from the first quarter of 2007 (Table 1) in the
largest year-to-year increase since second quarter 2006, but average fares remained
4.6 percent below the January-to-March high set in 2001 (Table 6), 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 average
fares increased 11.7 percent from the first quarter of 1995 to the first
quarter of 2008 compared to a cumulative 41.0 percent inflation rate. First quarter 2008 fares increased 4.4
percent from the first quarter of 2007 compared to a 4.0 percent inflation rate
(Table 1).
The
average domestic itinerary fare in the first quarter
of 2008 of $332 was the highest average fare since the second quarter of 2006 (Table
2). The first-quarter 2008 average fare was up 10.1 percent from the
post-9/11 first-quarter low of $301 in 2005
(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 first quarter of 2008 rose 1.5 percent from the fourth-quarter
2007 average of $327 (Table 2). Quarter-to-quarter changes may be affected by
seasonal factors.
Beginning with this release, BTS
will 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 first-quarter
average fares were in Cincinnati;
followed by Greenville/Spartanburg, SC; Madison,
WI; Knoxville,
TN; and Grand Rapids,
MI. The lowest fares in the top 100 airports were at Atlantic
City, NJ followed by Dallas
Love, TX; Burbank, CA;
Ft. Lauderdale, FL;
and Las Vegas (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 first quarter among the 100 largest airports, ranked by originating
passengers, was 15.6 percent in Boston followed
by Washington Dulles; Houston Bush; Washington Reagan National; and Chicago
Midway (Table 4).
The biggest year-to-year average decrease was 48.6
percent Atlantic City, NJ followed
by Charleston, SC; Ft.
Lauderdale, FL; San
Francisco; and Atlanta (Table 4).
The largest average fare increase from the first quarter of 1995 was 187.2 percent at Dallas
Love, followed by Lubbock, TX; Houston
Hobby; El Paso, TX; and Las Vegas (Table
5).
The largest average
fare decrease from the first quarter of 1995 to
the first quarter of 2007 was 34.6 percent in White Plains, NY. The other top five average fare decreases
over this period took place at Manchester, NH; Newburgh, NY; Jackson, MS;
and Pittsburgh (Table 5).
The Air Travel Price Index (ATPI)
A
separate measure of fares, the BTS Air Travel Price Index (ATPI) was up 6.0
percent from the first quarter of 2007 to the first quarter of 2008, reaching the highest first-quarter
level recorded in the 14 years of the ATPI (Table 8) (1995 1st quarter = 100). The ATPI is up 3.8
percent from its pre-9/11 first quarter high set in 2001 and up 16.8 percent
from its post-9/11 first quarter low set in 2005 (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 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 ATPI rose 2.3 percent from the fourth quarter of 2007 to the first quarter of 2008.
Quarter-to-quarter changes may be affected by seasonal factors (Table 2).
The largest year-to-year fare index increase for the first quarter among the 85 largest airline markets,
ranked by passengers, was 13.3 percent in Buffalo/Niagara, NY followed by Charlotte,
NC; Boston;
Washington; and Philadelphia
(Table 9).
The biggest year-to-year ATPI decrease for the first quarter was 6.1 percent for trips originating
in Charleston, SC; St. Louis;
Memphis, TN;
Atlanta; and Seattle/Tacoma (Table 9).
The largest fare index increase from the first quarter of 1995 to the first quarter of 2008 was 68.8 percent in Burbank,
CA. The other top ATPI increases over this
period took place at Long Beach, CA;
Ft. Myers, FL;
New Orleans; and Greensboro/High
Point, NC (Table 10).
There were no first-quarter
fare index decreases for the 13-year 1995-to-2008 period. The smallest increases were in Manchester,
NH; Denver;
Richmond, VA;
Raleigh/Durham, NC; 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. Second-quarter 2008 average fare data and the
ATPI will be released on Oct. 29.
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: First 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 |
284 |
-4.4 |
2.8 |
-4.4 |
2.8 |
1997 |
283 |
-0.2 |
2.8 |
-4.6 |
5.7 |
1998 |
305 |
7.5 |
1.4 |
2.6 |
7.1 |
1999 |
332 |
8.9 |
1.7 |
11.7 |
9.0 |
2000 |
340 |
2.6 |
3.8 |
14.6 |
13.1 |
2001 |
348 |
2.2 |
2.9 |
17.1 |
16.4 |
2002 |
320 |
-8.0 |
1.5 |
7.8 |
18.1 |
2003 |
319 |
-0.3 |
3.0 |
7.5 |
21.7 |
2004 |
320 |
0.3 |
1.7 |
7.8 |
23.8 |
2005 |
301 |
-5.9 |
3.2 |
1.5 |
27.7 |
2006 |
323 |
7.3 |
3.4 |
8.9 |
32.0 |
2007 |
318 |
-1.7 |
2.8 |
7.0 |
35.6 |
2008 |
332 |
4.4 |
4.0 |
11.7 |
41.0 |
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 Second 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
Second
Quarter 2006 |
342 |
5.3 |
120.6 |
5.3 |
Third
Quarter 2006 |
330 |
-3.5 |
117.4 |
-2.6 |
Fourth
Quarter 2006 |
318 |
-3.8 |
114.0 |
-2.9 |
First
Quarter 2007 |
318 |
-0.1 |
114.6 |
0.5 |
Second
Quarter 2007 |
325 |
2.3 |
117.8 |
2.9 |
Third
Quarter 2007 |
328 |
0.7 |
118.8 |
0.8 |
Fourth
Quarter 2007 |
327 |
-0.3 |
118.7 |
-0.1 |
First
Quarter 2008 |
332 |
1.5 |
121.4 |
2.3 |
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 First
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 |
535 |
2 |
Greenville/Spartanburg,
SC |
474 |
3 |
Madison, WI |
455 |
4 |
Knoxville TN |
440 |
5 |
Grand Rapids, MI |
436 |
|
Average
Fare at All Airports |
332 |
|
Lowest Average Fares |
|
1 |
Atlantic City, NJ |
109 |
2 |
Dallas Love, TX |
210 |
3 |
Burbank/Glendale/Pasadena,
CA |
237 |
4 |
Ft. Lauderdale, FL |
238 |
5 |
Las Vegas, NV |
241 |
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 |
Boston, MA |
335 |
388 |
15.6 |
2 |
Washington Dulles, VA |
363 |
418 |
15.2 |
3 |
Houston Bush, TX |
354 |
405 |
14.5 |
4 |
Washington Reagan National |
349 |
397 |
13.7 |
5 |
Chicago Midway, Il |
223 |
253 |
13.3 |
|
Average
Fare at All Airports |
318 |
332 |
4.4 |
|
Largest Decreases |
|
|
|
1 |
Atlantic City, NJ |
212 |
109 |
-48.6 |
2 |
Charleston, SC |
493 |
401 |
-18.8 |
3 |
Ft. Lauderdale, FL |
258 |
238 |
-7.7 |
4 |
San Francisco, CA |
422 |
396 |
-6.2 |
5 |
Atlanta, GA |
377 |
354 |
-6.0 |
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 |
73 |
210 |
187.2 |
2 |
Lubbock, TX |
126 |
268 |
112.8 |
3 |
Houston Hobby, TX |
124 |
249 |
100.9 |
4 |
El Paso, TX |
154 |
301 |
95.7 |
5 |
Las Vegas, NV |
134 |
241 |
79.7 |
|
Average Fare at All Airports |
297 |
332 |
11.7 |
|
Largest Decreases |
|
|
|
1 |
White Plains, NY |
463 |
303 |
-34.6 |
2 |
Manchester, NH |
433 |
303 |
-30.1 |
3 |
Newburgh, NY |
352 |
255 |
-27.5 |
4 |
Jackson, MS |
477 |
357 |
-25.2 |
5 |
Pittsburgh, PA |
398 |
305 |
-23.5 |
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
(First Quarter to First Quarter for fares; March to March 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 |
|
332 |
|
|
2007 |
1 |
318 |
4.4 |
4.0 |
2006 |
2 |
323 |
2.6 |
6.9 |
2005 |
3 |
301 |
10.1 |
10.5 |
2004 |
4 |
320 |
3.6 |
13.9 |
2003 |
5 |
319 |
3.9 |
15.9 |
2002 |
6 |
320 |
3.6 |
19.4 |
2001 |
7 |
348 |
-4.6 |
21.2 |
2000 |
8 |
340 |
-2.5 |
24.7 |
1999 |
9 |
332 |
0.0 |
29.4 |
1998 |
10 |
305 |
8.8 |
31.6 |
1997 |
11 |
283 |
17.0 |
33.5 |
1996 |
12 |
284 |
16.8 |
37.1 |
1995 |
13 |
297 |
11.7 |
41.0 |
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 First Quarter Each Year Since 1995
U.S.-Origin
Itineraries, First Quarter to First Quarter
Excel | CSV
6.0 |
2007 |
1 |
6.0 |
2006 |
2 |
16.8 |
2005 |
3 |
11.8 |
2004 |
4 |
12.4 |
2003 |
5 |
12.2 |
2002 |
6 |
3.8 |
2001 |
7 |
14.4 |
2000 |
8 |
18.8 |
1999 |
9 |
16.1 |
1998 |
10 |
19.0 |
1997 |
11 |
23.0 |
1996 |
12 |
21.4 |
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 First Quarter to First Quarter (First Quarter 1995 = 100)
Excel | CSV
1995 |
100.0 |
|
1996 |
98.7 |
-1.3 |
1997 |
102.0 |
3.3 |
1998 |
104.6 |
2.5 |
1999 |
102.2 |
-2.3 |
2000 |
106.1 |
3.8 |
2001 |
116.9 |
10.2 |
2002 |
108.2 |
-7.5 |
2003 |
108.0 |
-0.2 |
2004 |
108.6 |
0.6 |
2005 |
103.9 |
-4.3 |
2006 |
114.6 |
10.3 |
2007 |
114.6 |
0.0 |
2008 |
121.4 |
6.0 |
Source:
Bureau of Transportation Statistics
Table 9: Top Five First Quarter Air Travel Price Index Increases and
Decreases, 2007-2008
Top 85 Air Travel
Markets*
Air Travel Price
Index Percent Change, First Quarter 2007 to First Quarter 2008
(First Quarter 1995
= 100)
Excel | CSV
|
Largest Increases |
|
|
|
1 |
Buffalo/Niagara,
NY |
99.0 |
116.0 |
17.1 |
2 |
Charlotte, NC |
114.2 |
129.3 |
13.3 |
3 |
Boston, MA |
105.2 |
119.1 |
13.2 |
4 |
Washington, DC |
107.6 |
120.3 |
11.8 |
5 |
Philadelphia, PA |
102.8 |
114.8 |
11.7 |
|
ATPI
for All
U.S. Origins |
114.6 |
121.4 |
6.0 |
|
Largest Decreases/Smallest Increases |
|
|
|
1 |
Charleston, SC |
128.5 |
120.7 |
-6.1 |
2 |
St. Louis, MO |
117.2 |
116.1 |
-0.9 |
3 |
Memphis, TN |
116.8 |
115.9 |
-0.8 |
4 |
Atlanta, GA |
120.5 |
121.0 |
0.5 |
5 |
Seattle/Tacoma,
WA |
112.2 |
113.1 |
0.8 |
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, First Quarter 1995
to First Quarter 2008
(First Quarter 1995 = 100)
Excel | CSV
|
Largest Increases |
|
|
|
1 |
Burbank/Glendale/Pasadena,
CA |
100 |
168.8 |
68.8 |
2 |
Long Beach, CA |
100 |
165.9 |
65.9 |
3 |
Ft. Myers, FL |
100 |
146.0 |
46.0 |
4 |
New Orleans, LA |
100 |
145.2 |
45.2 |
5 |
Greensboro/High
Point, NC |
100 |
143.6 |
43.6 |
|
ATPI
for All
U.S. Origins |
100 |
121.4 |
21.4 |
|
Largest Decreases/Smallest Increases |
|
|
|
1 |
Manchester, NH |
100 |
101.3 |
1.3 |
2 |
Denver, CO |
100 |
105.2 |
5.2 |
3 |
Richmond, VA |
100 |
105.8 |
5.8 |
4 |
Raleigh/Durham,
NC |
100 |
106.6 |
6.6 |
5 |
Detroit, MI |
100 |
108.2 |
8.2 |
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,: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: Atlantic City,
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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