Airfares Rise Due to Passenger Demand

If you’re thinking about flying somewhere in the upcoming months you may want to book your plane ticket sooner rather than later… Some of the nation’s leading airline executives appeared at an investor conference earlier this week and all of them agreed on a strong demand for air travel that’s making costs of their tickets increase. The surge in demand is lifting fares by about $15 to $20 on a $200 ticket. Both Delta Airlines and American reported record days for passengers bookings last week. The rise in costs has also allowed airlines to ‘more than offset the fuel cost.’ Fuel is the second largest expense for airlines making up 20% to 25% of operating expenses and employees are the first.