Airline ticket prices expected to take off for the holiday season because of fuel costs

October 16, 2018 by Brian Huchel, Purdue University
Credit: CC0 Public Domain

High crude oil prices could fuel a jump in ticket prices for people flying during the holiday travel season, according to a Purdue aviation professor.

Yi Gao, an associate professor in management for the Purdue Polytechnic Institute, said continue an upward trend in recent months, remaining above $70 per barrel as of mid-October. The result could have a ripple effect for airline .

"In the last two or three years, airfare has been a little more affordable because fuel was cheaper," he said. "But now fuel is starting to rise up little bit and airlines will use that to justify a price increase."

The result already has been felt with some international airlines, which have started to use fuel surcharges again to compensate for the losses.

"It's pretty difficult to forecast exactly when we will start to see the impact," said Gao, who has studied aviation management in the U.S., Australia and China. "But it's is possible that airfare for the incoming season will be more expensive than last few years."

Gao said travelers planning to fly during the holidays should make their plans quickly to avoid rising prices from the fuel costs.

He said fliers also should confirm the checked-in luggage allowance and fare class before booking to avoid unexpected charges.

Labor and fuel are the two biggest expenses face each year in terms of cost. And while labor is relatively stable, fuel is not.

"Fuel can increase from $40 to $80 per barrel within a year or drop that much in the same amount of time," Gao said.

Explore further: Buy early, be flexible for best holiday airfare prices, expert says

Related Stories

Why our carbon emission policies don't work on air travel

July 4, 2018

The federal government's National Energy Guarantee aims to reduce greenhouse gas emissions in the electricity industry by 26% of 2005 levels. But for Australia to meet its Paris climate change commitments, this 26% reduction ...

Recommended for you

Matter waves and quantum splinters

March 25, 2019

Physicists in the United States, Austria and Brazil have shown that shaking ultracold Bose-Einstein condensates (BECs) can cause them to either divide into uniform segments or shatter into unpredictable splinters, depending ...

How tree diversity regulates invading forest pests

March 25, 2019

A national-scale study of U.S. forests found strong relationships between the diversity of native tree species and the number of nonnative pests that pose economic and ecological threats to the nation's forests.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.