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No Relief for Air Travelers

Oil prices have fallen by about half since June, making it much cheaper just in time for drivers to fill up their cars for Christmas travel. But the decline in oil prices has had made no perceptible difference on the cost of flying.

New York Times: No Relief for Air Travelers.

3 replies on “No Relief for Air Travelers”

Very few business will lower their prices when their expenses go down. That only usually happens when one’s competitors start reducing prices. The airlines in particular seem to collude with each other on prices. On the other hand, a reduction in expenses is such a rare occurrence, it must feel pretty good for a business to get a little breathing room.

This is interesting. Sort of like how the price of coffee beans have decreased but the price of Starbucks lattes have remained constant. But you have to think of it from a business perspective. Less cost results in larger profit margins.

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