Airline Fuel Prices Are Falling But Customers Fares Are Not

Southwest Airlines and Fuel Savings

The low cost of fuel shaved 36% off operating costs at airlines in the first nine months of 2015. Almost none of those savings were passed onto customers.

According to CNN Money, an examination of airline financial statements found that they saved $11.1 billion in fuel costs.

Despite those savings, the average price for passengers paying to fly on American, United, and Southwest, has fallen by only $8.28, or 4%, to $181.11.

The company’s claim travel prices have remained high because a strong economy and U.S. dollar has led to an increase in travel demand.

The four airlines, which account for the overwhelming majority of U.S. air travel, filled about 84% of their seats in the first nine months of the year. They filled around the same percentage in 2014, but this year they increased capacity by 3%.

Even without drastic decreasing in fare prices, the major airlines insist they are using their new windfalls to acquire new planes and build new products that ultimately help customers and make their flying experience more enjoyable.

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U.S. Airlines are reportedly reinvesting $1.3 billion per month into new planes and other customer-centric plans.

Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at