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US travellers face record prices for air travel as carriers hike fares seven times in 2011

31-May-2011 10:19 AM

US travellers are facing record prices for air travel, with carriers hiking fares seven times in 2011 to offset the cost of fuel (AP, 31-May-2011). Fares have increased 48% from 2010. During the first three months of 2011, carriers spent USD8.7 billion on fuel which is 31% more than 2010. The industry’s expenses, aside from fuel, break down as follows:

  • 28% on salaries and benefits;
  • 18% on aircraft maintenance, airport landing fees and travel agency commissions;
  • 5% on aircraft lease payments, food and drinks and in-flight entertainment;
  • 14% on miscellaneous costs such as updating reservation systems and marketing partnerships with other carriers.