Oil Prices are Dropping but Not Air Ticket Fares

November 21, 2014 By Airline Ticket Centre

Because of the recent drop in oil price the airline companies in North America are making a lot of money. But these airlines are not sharing their profits with their clients and neither are looking into reducing their fares for that matter.

On the contrary, fares are going up and the bag fees that Airlines instituted in 2008 in response to the fuel prices spiked are not going away either. Some US carriers, reported approximately 5.6% gain in their first quarter of earnings.

The fuel expenses contribute approximately 34% of total airline operating expenses. So the 10% decrease in gas prices helped aviation industry to save $1.6 billion in the US alone. But none of these savings are giving any kind of relief to air travelers.