Fares Are Down, Say What?!

Aug 11 2015 Fares Are Down, Say What?! BY admin TAGS AirlinesFares

 

Here’s something you haven’t heard about …

In Springfield, and Northwest Arkansas, the airlines are charging less; fares are going down.

Yes, you read that right. Fares are down. They've been going down for the past two years. They’re not down much, but they are down. Take a look at the numbers. The cost of fare is shown as “one-way” because that’s how the industry tracks fare data:

 

Springfield (SGF)

2010

2011

2012

2013

2014

Average one-way fare

$230.03

$255.00

$260.49

$257.82

$253.56

           
           

Northwest Arkansas (XNA)

2010

2011

2012

2013

2014

Average one-way fare

$276.41

$305.59

$318.02

$318.21

$296.73

Fare data compiled by Boyd Group International August 10, 2015

 

Common wisdom says the recent airline mergers have driven up the cost of flying, but it isn’t happening here. So, what’s going on? We think it boils down to one thing: competition among the four big airlines that survived the consolidation wave. Here’s an example …

In early July American Airlines announced new service between Springfield and Charlotte, beginning November 5. The lowest introductory fare we saw American offer was $225 round-trip. The price bounced up and down for several days. Then Delta and United jumped in with their own low fare trips to Charlotte. By July 21 all three airlines matched each other for round-trip to Charlotte: $303.

This kind of competitive price matching goes on in Springfield more than people realize …

Since July 1 we’ve seen the following price wars:

  • Allegiant offered round-trip fare to Los Angeles for $322. Delta countered with $318.
  • American, Delta, and United, matched each other with round-trips fares to Cancun: $566.
  • Delta and United matched each other (again) for a round-trip to Charlotte: $278.
  • American’s fare for a round-trip to Cancun fell to $464.
  • Delta and United matched fares to Fort Lauderdale: $280.

In the past week we’ve seen:

  • American round-trip to Dallas: $170
  • American round-trip to Austin: $274
  • American round-trip to New York City - Kennedy Airport: $315
  • Allegiant round-trip to Las Vegas: $142
  • Allegiant round-trip to St. Petersburg/Tampa: $135
  • Delta round-trip to Charlotte: $224

There's more, but you get the idea — the airlines are definitely going head to head in Springfield. Ditto for Northwest Arkansas. Let's hope the trend continues.

 

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