Average second quarter US domestic air fares Increased 3.8% from the first quarter, while average US domestic air fares rose to $341 in the second quarter of 2010, up 3.8% from the average fare of $328 in the first quarter, according to US Department of Transportation’s Bureau of Transportation Statistics (BTS) reported yesterday. Fares have increased 13.1% over the past year after falling to a recent low of $301 in the second quarter of 2009.
BTS, a part of the Research and Innovative Technology Administration, reported that the $341 second-quarter 2010 average fares were down 4.75% from the all-time high, not inflation-adjusted, of $358 in the third quarter of 2008. Second quarter 2010 average fares were up 13.1% from the post-9/11 second-quarter low of $301 in 2009, not adjusted for inflation. Adjusted for inflation, second-quarter 2010 fares in 1995 dollars were $238, down 21.1% from the average fare of $302 in the second quarter of 1999, the inflation adjusted high for any second quarter since 1995. BTS air fare records reach back to 1995.
US Passenger airlines collected 70.9% of their total revenue from passenger fares during the first half of 2010. During the full year 2009, the percentage of revenue from fares was 70.2%, down from 84.1% in 2000.
Air fares in the second quarter of 2010 increased 0.5% since the second quarter of 2000, compared to an overall increase in consumer prices of 26.4% during that period.
In the 15 years from 1995 air fares rose 14.8% compared to a 42.9% inflation rate.
In 1995 dollars, the average air fare in the second quarter of 2010 was $238, compared to $297 in 1995 and $300 in 2000. See BTS Air Fare web page for more historic data that could affect your investment decision.