US air fares reach record levels (continued)

"I see no abatement," Calyon Securities airline analyst Ray Neidl told the Seattle Post-Intelligencer. "That's showing that there's more demand than supply."

One survey showed business fares were up by 18% this year over last year and leisure fares were up 9%.

The airport with the largest increase was Cincinnati, which showed an average 36.6% increase, according to the DOT. One major reason: Delta trimmed flights after its bankruptcy filing in late 2005.

Only three markets -- Honolulu, Denver and Kahului Hawaii on the island of Maui saw one-year declines in fares.

Last week, Delta Air Lines raised its fares $5 one way or $10 round trip. United matched the hike, making this the seventh industry fare boost this year.

Two major reasons for the hikes: rising oil prices and increased demand.

But even with the recent far hikes, rates are still lower than they were 18 years ago, according to the Air Transport Association.


Source: TravelMole

   

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