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Average Second-Quarter
Air Fares Fell 4.5 Percent from 2006; Top 100 Airports:
Highest Fare in Cincinnati,
Lowest Fare at Lihue (Kauai)
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Contact |
BTS 49-07
Dave Smallen
202-366-5568 |
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Wednesday, October
24, 2007 - Average air fares in the second quarter of 2007 were down 4.5
percent from the second quarter of 2006 and remained below the pre-9/11 high (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 of 2007 was $326, down
4.5 percent from the average fare in the second quarter of 2006 , the post-2001
high, and down 5.8 percent from the historic second-quarter high of $346 in
2000 (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 previous BTS fare press releases 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 second quarter rose 2.3 percent from the
first-quarter 2007 average of $319 (Table 2). Quarter-to-quarter changes may be affected by seasonal factors.
Of the top 100 airports based on
originating passengers, the highest second-quarter
average fares were in Cincinnati,
followed by Anchorage, AK;
Greenville/Spartanburg, SC; Knoxville, TN;
and Charleston, SC. The lowest fares in the top 100 airports were
at three Hawaii airports followed
by Dallas Love; and Chicago Midway (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
second quarter among the 100 largest airports, ranked by originating
passengers, was 6.7 percent in Cincinnati,
followed by Hartford, CT;
Dallas Love; Anchorage, AK;
and Salt Lake City (Table 4).
The biggest year-to-year average decrease was 28.8 percent
in Lihue (Kauai), HI. The four
largest year-to-year average fare decreases for the second quarter were for
itineraries originating in four Hawaii
airports followed by Charleston, SC
(Table 4).
Four of the five largest average fare
increases from the second quarter of 1995 to the second quarter of 2007 were at Hawaii airports. The other top fare index increase over this 12-year period took place at Dallas Love (Table 5).
The largest average fare
decrease from the second quarter of 1995 to the second quarter of 2007 was 32.4
percent in Manchester, NH. The other top five fare index decreases over
this period took place at Buffalo, NY; Akron/Canton, OH; Islip, NY; and Flint, MI (Table 5).
Second-quarter
2007 average fares were up 6.3 percent from their recent second-quarter low in
2005 but down 5.8 percent from their all-time second-quarter high in 2000
(Table 6).
The Air Travel Price Index (ATPI)
A
separate measure of fares, the BTS Air Travel Price Index (ATPI) was down 2.3
percent from the second quarter of 2006 which was its highest second quarter
level recorded (Table 8) (1995 1st quarter = 100).
ATPI
is a statistical index that documents quarterly changes in airline prices since
the second 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
2.3 percent drop in the ATPI from the second quarter of 2006 to the second
quarter of 2007 reversed last year's trend when the second quarter 2006 index
rose by 11.5 per cent from the second quarter of 2005, the largest second
quarter year-to-year gain in the index's history (Table 8).
While
remaining high, the ATPI rose only slightly to 117.8 from 114.6 in first
quarter 2006. Quarter-to-quarter changes may be affected by seasonal factors
(Table 2).
The largest
year-to-year fare index increase for the second quarter among the 85 largest
airline markets, ranked by passengers, was 4.7 percent in Cincinnati, followed by Hartford, CT; Providence, RI; New Orleans; and Long Beach, CA (Table 9).
The biggest year-to-year ATPI decrease for the second quarter
was 19.0 percent for trips originating in Kona,
HI. The top three fare decreases over this period took place at
Hawaiian airports. Charleston,
and Savannah, GA
were the non-Hawaiian markets with a top five fare decrease (Table 9).
The largest fare index increase from the second quarter of
1995 to the second quarter of 2007 was 85.8 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 second-quarter 12-year fare index decreases
were in Denver; Manchester, NH; and Islip (Long Island) NY. The two markets
with the smallest increases were Richmond, VA;
and Minneapolis/St. Paul, MN (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. Third-quarter average fare data and the ATPI
will be released on Jan. 23, 2008.
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 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 |
305.11 |
0.2 |
1996 |
282.56 |
-7.4 |
1997 |
296.59 |
5.0 |
1998 |
307.90 |
3.8 |
1999 |
336.88 |
9.4 |
2000 |
346.35 |
2.8 |
2001 |
333.47 |
-3.7 |
2002 |
322.08 |
-3.4 |
2003 |
315.16 |
-2.2 |
2004 |
309.56 |
-1.8 |
2005 |
306.75 |
-0.9 |
2006 |
341.75 |
11.4 |
2007 |
326.22 |
-4.5 |
Source:
Bureau of Transportation Statistics
Table 2: Average Domestic Airline Fares and Air Travel
Price Index Since Second 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
Third
Quarter 2005 |
305.96 |
-0.3 |
109.2 |
0.9 |
Fourth
Quarter 2005 |
314.89 |
2.9 |
111.5 |
2.2 |
First
Quarter 2006 |
323.39 |
2.7 |
114.6 |
2.7 |
Second
Quarter 2006 |
341.75 |
5.7 |
120.6 |
5.3 |
Third
Quarter 2006 |
330.55 |
-3.3 |
117.4 |
-2.6 |
Fourth
Quarter 2006 |
319.02 |
-3.5 |
114.0 |
-2.9 |
First
Quarter 2007 |
318.92 |
0.0 |
114.6 |
0.5 |
Second
Quarter 2007 |
326.22 |
2.3 |
117.8 |
2.9 |
Source:
Bureau of Transportation Statistics
Table 3: Highest and Lowest Average Domestic Fares Second
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 |
562.23 |
2 |
Anchorage, AK |
487.68 |
3 |
Greenville/Spartanburg,
SC |
469.26 |
4 |
Knoxville TN |
442.09 |
5 |
Charleston, SC |
438.17 |
|
Average
Fare at All Airports |
326.22 |
|
Lowest Average Fares |
|
1 |
Lihue (Kauai), HI |
138.66 |
2 |
Kona, HI |
168.63 |
3 |
Kahului (Maui), HI |
179.25 |
4 |
Dallas Love, TX |
195.11 |
5 |
Chicago Midway, Il |
219.25 |
Source:
Bureau of Transportation Statistics
Table 4: Top Five Second 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 |
526.94 |
562.23 |
6.7 |
2 |
Hartford, CT |
350.75 |
369.31 |
5.3 |
3 |
Dallas Love, TX |
186.63 |
195.11 |
4.5 |
4 |
Anchorage, AK |
467.48 |
487.68 |
4.3 |
5 |
Salt Lake City, UT |
331.62 |
338.59 |
2.1 |
|
Average
Fare at All Airports |
341.75 |
326.22 |
-4.5 |
|
Largest Decreases |
|
|
|
1 |
Lihue (Kauai), HI |
194.75 |
138.66 |
-28.8 |
2 |
Kona, HI |
231.32 |
168.63 |
-27.1 |
3 |
Kahului (Maui), HI |
232.50 |
179.25 |
-22.9 |
4 |
Honolulu, HI |
308.67 |
248.41 |
-19.5 |
5 |
Charleston, SC |
509.06 |
438.17 |
-13.9 |
Source:
Bureau of Transportation Statistics
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 |
Kahului (Maui), HI |
53.77 |
179.25 |
233.4 |
2 |
Kona, HI |
51.02 |
168.63 |
230.5 |
3 |
Lihue (Kauai), HI |
42.77 |
138.66 |
224.2 |
4 |
Dallas Love, TX |
74.36 |
195.11 |
162.4 |
5 |
Honolulu, HI |
119.33 |
248.41 |
108.2 |
|
Average
Fare at All Airports |
305.11 |
326.22 |
6.9 |
|
Largest Decreases |
|
|
|
1 |
Manchester, NH |
444.46 |
300.27 |
-32.4 |
2 |
Buffalo, NY |
355.52 |
259.49 |
-27.0 |
3 |
Akron/Canton,
OH |
376.43 |
279.90 |
-25.6 |
4 |
Islip, NY |
304.66 |
227.67 |
-25.3 |
5 |
Flint, MI |
389.10 |
291.00 |
-25.2 |
Source:
Bureau of Transportation Statistics
Table 6: Percent Changes to 2007 in Average Fares
From Second Quarter Each Year Since 1995
U.S.-Origin Itineraries, Second Quarter to Second 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
-4.5 |
2006 |
1 |
341.75 |
6.3 |
2005 |
2 |
306.75 |
5.4 |
2004 |
3 |
309.56 |
3.5 |
2003 |
4 |
315.16 |
1.3 |
2002 |
5 |
322.08 |
-2.2 |
2001 |
6 |
333.47 |
-5.8 |
2000 |
7 |
346.35 |
-3.2 |
1999 |
8 |
336.88 |
5.9 |
1998 |
9 |
307.90 |
10.0 |
1997 |
10 |
296.59 |
15.5 |
1996 |
11 |
282.56 |
6.9 |
1995 |
12 |
305.11 |
Source:
Bureau of Transportation Statistics
Table 7: Percent Changes to 2007 in the Air Travel Price
Index
From Second Quarter Each Year Since 1995
U.S.-Origin Itineraries, Second Quarter to Second Quarter
Excel | CSV
-2.3 |
2006 |
1 |
8.9 |
2005 |
2 |
10.9 |
2004 |
3 |
11.4 |
2003 |
4 |
10.8 |
2002 |
5 |
5.4 |
2001 |
6 |
8.9 |
2000 |
7 |
15.5 |
1999 |
8 |
17.8 |
1998 |
9 |
13.9 |
1997 |
10 |
20.4 |
1996 |
11 |
16.5 |
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 Second Quarter to Second Quarter (Second
Quarter 1995 = 100)
Excel | CSV
1995 |
101.1 |
|
1996 |
97.8 |
-3.3 |
1997 |
103.5 |
5.8 |
1998 |
100.0 |
-3.4 |
1999 |
102.1 |
2.1 |
2000 |
108.2 |
6.0 |
2001 |
111.8 |
3.3 |
2002 |
106.4 |
-4.8 |
2003 |
105.8 |
-0.6 |
2004 |
106.2 |
0.4 |
2005 |
108.2 |
1.8 |
2006 |
120.6 |
11.5 |
2007 |
117.8 |
-2.3 |
Source: Bureau of Transportation Statistics
Table 9: Top Five Second
Quarter Air Travel Price Index Increases and Decreases, 2006-2007
Top 85 Air Travel
Markets
Air Travel Price
Index Percent Change, Second Quarter 2006 to Second Quarter 2007
(Second Quarter 1995
= 100)
Excel | CSV
|
Largest Increases |
|
|
|
1 |
Cincinnati, OH |
137.0 |
143.3 |
4.7 |
2 |
Hartford, CT |
112.6 |
116.2 |
3.2 |
3 |
Providence, RI |
109.9 |
113.3 |
3.1 |
4 |
New Orleans, LA |
137.4 |
139.8 |
1.8 |
5 |
Long Beach, CA |
163.6 |
165.0 |
0.9 |
|
ATPI for All
U.S. Origins |
120.6 |
117.8 |
-2.3 |
|
Largest Decreases |
|
|
|
1 |
Kona, HI |
181.5 |
147.0 |
-19.0 |
2 |
Lihue (Kauai), HI |
216.7 |
182.2 |
-15.9 |
3 |
Kahului (Maui), HI |
130.1 |
110.7 |
-14.9 |
4 |
Charleston, SC |
141.3 |
122.9 |
-13.1 |
5 |
Savannah, GA |
138.8 |
122.0 |
-12.1 |
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, Second Quarter 1995 to Second Quarter 2007
(Second Quarter 1995
= 100)
Excel | CSV
|
Largest Increases |
|
|
|
1 |
Long Beach, CA |
88.8 |
165.0 |
85.8 |
2 |
Lihue (Kauai), HI |
103.1 |
182.2 |
76.7 |
3 |
Burbank/Glendale/Pasadena, CA |
101.4 |
162.9 |
60.5 |
4 |
Kona, HI |
102.4 |
147.0 |
43.5 |
5 |
Anchorage, AK |
107.3 |
153.0 |
42.6 |
|
ATPI for All
U.S. Origins |
101.1 |
117.8 |
16.5 |
|
Largest Decreases/Smallest Increases |
|
|
|
1 |
Denver, CO |
104.5 |
99.1 |
-5.2 |
2 |
Manchester, NH |
99.4 |
95.8 |
-3.7 |
3 |
Long Island, NY |
104.8 |
104.5 |
-0.3 |
4 |
Richmond, VA |
101.7 |
102.7 |
1.0 |
5 |
Minneapolis/St. Paul, MN |
103.6 |
105.0 |
1.3 |
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.
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