Average Price of an Airline Ticket Dropped Substantially in July
Largest Decline Since December 1995 Reported
The cost of buying a plane ticket went down considerably last month.
The U.S. Department of Labor’s Bureau of Labor Statistics announced Wednesday that the average airfare dropped 5.6% in July, the Consumer Price Index for airline fares “fell sharply,” while the indices for food, energy, as well as all items except food and energy were up slightly in the same period. The agency said that indices for used cars and trucks, household furnishings and operations, and new cars all declined as well.
The drop in ticket prices follows a trend towards lower oil prices, which started in late 2014. The Bureau of Labor statistics said that the July drop was the largest decline for airline fares since December 1995.
Consumers typically begin to benefit from falling oil prices anywhere from six months to a year after the decline, in part because some airlines were caught by surprise by the drop and had hedged them at a higher cost.
(Photo: Accura Media Group)