Why Are Flight Prices So Low?

LOW FUEL COSTS

Jet-fuel prices have fallen nearly 50% over the past year as oil prices have declined, significantly lowering costs for airlines and boosting their profits to record highs. A portion of those savings gets passed on to consumers.

LEGAL TROUBLES

The Justice Department is investigating anticompetitive practices among the major U.S. airlines, which have consolidated their power through a series of mergers over the past decade. Keeping prices low may help them avoid signs of collusion.

LOWER DEMAND

Following summer vacations, families tend to get busy with back-to-school activities, a period travel experts refer to as a dead zone for bookings. That means prices are likely to dip further in August and September.

–Victor Luckerson