Airfare from Salt Lake City International Airport took off in the spring at the fastest pace in more than a decade, sparked by higher jet fuel prices and strong demand from travelers for seats, according to a U.S. Transportation Department report.
Fare prices jumped 17 percent from the same time last year, while fares across the country increased only 11 percent, according to the report released Wednesday. The blistering pace earned Salt Lake City the No. 9 position among 85 major airports tracked by the department.
"It's the law of supply and demand," said David Stempler, president of the Air Travelers Association. "The demand continued to rise and during that period fuel costs rose. So I think the combination of these two things drove airfares up."
The increase, a statistical yardstick the department calls the Air Travel Index, measures how much fares change based on actual fares paid by travelers rather than published fares, which often are higher.
Stempler said rising fares also indicate how much competition exists among airlines for passengers on certain routes and to the popularity of Salt Lake City as a year-round destination for leisure and business travelers.
Those facts weren't lost on Steve Matthews, a Renaissance history professor who flew to Salt Lake City from Duluth, Minn., on Wednesday to attend an academic conference.
Matthews flew on Northwest Airlines, the only major carrier providing service from Duluth to Salt Lake City via its Minneapolis hub. He booked his flight more than a month ago and paid $693 for his ticket.
"I think [fares] were a little higher than what I was used to; I think about 20 percent. I was a little surprised, but I had to come anyway. It's part of the price of attending a conference," Matthews said.
Salt Lake City fares have been rising since the second quarter of 2005, following an extended period of stable or falling prices. The biggest increases measured by the government arrived in the first and second quarters of this year, compared with the same period of last year, according to department figures.
Whether the airlines can keep fares rising at the same pace isn't clear.
Jet fuel prices have eased considerably, but the airline industry, which is on track to earn a $1.1 billion profit this year after suffering $40 billion in losses since 2000, isn't likely to let prices fall.
"I think the airlines want to replenish their balance sheets, and I think they would try to keep fares up as high as they can until the demand starts to fall off. We may expect that in winter, but not in a ski market like Salt Lake City, where demand will remain high," Stempler said.
His advice to Utahns who hope to travel or bring family here for the holidays: Act quickly. Prices on some routes may fall, but seat and flight availabilities could be limited.
"If you find a fare reasonable for your needs and there is a flight available, go ahead and take it because those seats on those flights may not be available later," he said.
EXPENSIVE DESTINATIONS
Ranking of cities where airfares increased the most during the second quarter of 2006 compared with a year earlier.
1. Cincinnati
2. Charleston, S.C.
3. Savannah, Ga.
4. Greensboro/High Point, N.C.
5. Raleigh/Durham, N.C.
6. Long Beach, Calif.
7. Manchester, N.H.
8. Fort Myers, Fla.
9. SALT LAKE CITY
10. West Palm Beach/Palm Beach, Fla.
Source: U.S. Department of Transportation
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