Average domestic air fares rose to $340 in the third quarter of 2010, up 10.7 percent from the average fare of $307 in the third quarter of 2009, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).

Published: 15 Feb 2011

Average domestic air fares rose to $340 in the third quarter of 2010, up 10.7 percent from the average fare of $307 in the third quarter of 2009, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).

Newark-Liberty, NJ, had the highest average fare, $469, while Atlantic City, NJ, had the lowest, $153.

Third-quarter fares decreased 0.3 percent from the second quarter, after four consecutive quarterly increases. During those four quarters ending in the second quarter of 2010, fares increased 12.9 percent after falling to a recent low of $302 in the second quarter of 2009.

BTS, a part of the Research and Innovative Technology Administration, reports average fares based on domestic itinerary fares, round-trip or one-way for which no return is purchased. 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 the airport or onboard the aircraft. Averages do not include frequent-flyer or “zero fares” or a few abnormally high reported fares.

The $340 third-quarter 2010 average fares were down 5.4 percent from the all-time high, not inflation-adjusted, of $359 in the third quarter of 2008. Third quarter 2010 average fares were up 14.6 percent from the post-9/11 third-quarter low of $297 in 2004, not adjusted for inflation. Adjusted for inflation, third-quarter 2010 fares in 1995 dollars were $238, down 19.8 percent from the average fare of $297 in the third quarter of 2000, the inflation-adjusted high for any third-quarter since 1995. BTS air fare records reach back to 1995.

Passenger airlines collected 71.1 percent of their total revenue from passenger fares during the first nine months of 2010. During the full year 2009, the percent of revenue from fares was 70.2 percent, down from 84.1 percent in 2000.

Air fares in the third quarter of 2010 increased 0.9 percent from the third quarter of 2000, compared to an overall increase in consumer prices of 25.8 percent during that period. In the 15 years from 1995, the first year of BTS air fare records, air fares rose 18.2 percent compared to a 42.6 percent inflation rate. In 1995 dollars, the average air fare in the third quarter of 2010 was $238, compared to $288 in 1995 and $297 in 2000.

Q3 Average Fares 1995-2010 Compared to Inflation Rate