The average domestic air fare decreased to $381 in the first quarter of 2014, down 1.0 percent from the average fare of $384 in the first quarter of 2013, adjusted for inflation, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today. During that January to March period, Cincinnati, Ohio, had the highest average fare, $514, while Sanford, Florida, had the lowest, $119.
BTS reports average fares based on domestic itinerary fares. Itinerary fares consist of round-trip fares, unless the customer does not purchase a return trip. In that case, the one-way fare is included. One-way trips accounted for 34 percent of fares calculated for the first quarter of 2014. Fares are based on the total ticket value, which consists of the price charged by the airlines plus any additional taxes and fees levied by an outside entity at the time of purchase. Fares include only the price paid at the time of the ticket purchase and do not include other fees, such as baggage fees, paid at either the airport or onboard the aircraft. Averages do not include frequent-flyer or “zero fares,” or abnormally high reported fares. Constant 2014 dollars are used for inflation adjustment.
Inflation-Adjusted Air Fares
First-quarter fares rose 7.9 percent adjusted for inflation from the recession-affected low of $349 in 2009 to the first quarter of 2011. Since 2011, first quarter fares have shown little change, increasing 1.2 percent from 2011 to 2014.
The first-quarter 2014 fare was down 19.9 percent adjusted for inflation from the average fare of $475 in 1999, the highest inflation-adjusted first quarter average fare in the 19 years since BTS began collecting air fare records in 1995. The 19.9 percent decline took place while there was an increase in overall consumer prices of 43.2 percent. Since 1995, inflation-adjusted fares declined 17.8 percent compared to a 56.1 percent increase in overall consumer prices.
U.S. passenger airlines collected 70.2 percent of their total revenue from passenger fares during the first quarter of 2014, down from 1990 when 87.6 percent of airline revenue was received from fares.
Quarter-to-Quarter Change
In the three-year period from the first quarter of 2011 to the first quarter of 2014, inflation-adjusted fares increased 1.2 percent. In the two-year period from the first quarter of 2012 to the fourth quarter of 2014, inflation-adjusted fares decreased 0.9 percent.
See BTS Air Fare Release for summary tables and additional data. See BTS Air Fare web page for historic data.
