Cheap airplane tickets and discount travel packages continue to be available though admittedly more difficult to find. The airline industry is experiencing its most profitable year in the last decade. Operating profits for U.S. airlines were in excess of $7 billion in the first nine months of 2010.
Increased profits are due in part to fares increasing an average of 13 percent over those in 2009. Income derived from airline fees has played an even larger role, with the airlines charging over $4 billion in the first nine months of this year just in baggage and change fees.
In 2008, US airlines lost $5.5 billion. The recession resulted in a sharp downturn in the number of people flying. This resulted in a drop in revenue while fuel prices increased dramatically, which drove up operating costs.
Airlines responded by significantly reducing the number of flights they offered. Empty seats on planes became the exception instead of the rule. Fees were added for services that had previously been free, including checked baggage and in-flight food.
As demand for air travel increased in 2010, the airlines have shown discipline and have restrained from increasing the number of planes flying. Airlines in general are not taking planes that were previously parked and putting them back into service. They are keeping the supply of seats tight, which has enabled them to charge higher prices.
Although some travelers may feel they are getting squeezed by increased ticket prices, airfares are in fact almost 4 percent lower than they were before the 9/11/2001 terrorist attacks that sent the industry into a tailspin.
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