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