BTS Releases 4th-Quarter 2014 Air Fare

BTS Releases 4th-Quarter 2014 Air Fare Data

 

 

            The average domestic air fare increased to $393 in the fourth quarter of 2014, up 2.0 percent from $385 in the fourth quarter of 2013, adjusted for inflation (Table 1), the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today. Of the 100 busiest airports, during the October to December 2014 period, passengers originating in Madison, Wisconsin, paid the highest average fare, $505, while passengers originating in Sanford, Florida, paid the lowest, $99 (Table 6).

  

            BTS reports average fares based on domestic itinerary fares. Itinerary fares consist of round-trip fares, unless the customer does not purchase a return trip. In that case, the one-way fare is included. One-way trips accounted for 31 percent of fares calculated for the fourth quarter of 2014. Fares are based on the total ticket value, which consists of the price charged by the airlines plus any additional taxes and fees levied by an outside entity at the time of purchase. Fares include only the price paid at the time of the ticket purchase and do not include fees for optional services, such as baggage fees. Averages do not include frequent-flyer or “zero fares,” or abnormally high reported fares. Constant 2014 dollars are used for inflation adjustment.

 

Inflation-Adjusted Air Fares

            Fourth-quarter fares rose 10.2 percent from the recession-affected low of $348 in 2009 to the fourth quarter of 2011. Since 2011, fourth-quarter fares have shown little change, increasing 2.4 percent from 2011 to 2014 (Table 1).

 

            The fourth-quarter 2014 fare was down 14.4 percent from the average fare of $459 in 2000, the highest inflation-adjusted fourth quarter average fare in the 19 years since BTS began collecting air fare records in 1995. The 14.4 percent decline took place while overall consumer prices rose 37 percent. Since 1995, inflation-adjusted fares declined 10.8 percent compared to a 55.4 percent increase in overall consumer prices (Table 2). See BTS Air Fare web page for historic data.

 

            U.S. passenger airlines collected 71.2 percent of their total revenue from passenger fares during the third quarter of 2014, the latest period for which revenue data are available, down from 1990 when 87.6 percent of airline revenue was received from fares (Table 1A).

 

Annual Fares

            The average fare of $391 for the full year 2014 was up 0.6 percent, inflation-adjusted, from the 2013 average fare of $389 but down 16.2 percent from the inflation-adjusted annual high of $467 in 2000. Not adjusted for inflation, the $391 average fare in 2014 is the highest annual fare since BTS began collecting air fare records in 1995, 2.5 percent higher than the previous high of $382 in 2013.

 

Quarter-to-Quarter Change

            In the three-year period from the fourth quarter of 2011 to the fourth quarter of 2014, inflation-adjusted fares increased 2.4 percent. In the two-year period from the fourth quarter of 2012 to the fourth quarter of 2014, inflation-adjusted fares increased 2.6 percent (Table 3).

 

Unadjusted Air Fares

            The $393 fourth-quarter 2014 average fare, up 2.8 percent from the fourth quarter of 2013, is the highest average fare for any fourth quarter since 1995. Since 1995, unadjusted fares rose 36.4 percent (Table 4).

 

            Fourth-quarter 2014 fares were down 0.8 percent from the third quarter of 2014, which at $396 was the all-time unadjusted high (Table 5). See Tables 13-16 for additional unadjusted fare data by airport.

 

Fares by Airport

            Tables 6-8 provide fare data for the top 100 airports based on 2013 originating passengers. All figures are reported in constant 2014 dollars. 

 

            Table 6: Five highest and five lowest average fares in the fourth quarter: Madison, Wisconsin, had the highest average fare ($505) while Sanford, Florida had the lowest ($99). For the Top 100 Airports, see Table 10 on the BTS website.

 

            Table 7: Five largest increases and five largest decreases from the fourth quarter of 2013 to the fourth quarter of 2014: Dayton, Ohio, had the largest increase (15.2 percent) and Cleveland, Ohio, had the largest decrease (-10.6 percent). For the Top 100 Airports, see Table 11 on the BTS website.

 

            Table 8: Five largest increases and five largest decreases from the fourth quarter of 2000 to the fourth quarter of 2014: Reno, Nevada had the largest increase (21.4 percent) and Bellingham, Washington, had the largest decrease (-51.2 percent). For the Top 100 Airports, see Table 12 on the BTS website.

 

            For additional data, see Top 100 Airports, Rankings or All Airports. Since average fares are based on the Origin and Destination Survey 10 percent ticket sample, averages for airports with smaller samples may be less reliable. Fares for Alaska, Hawaii and Puerto Rico airports are not included in rankings but are available on the web page. First-quarter 2015 average fare data will be released July 21.

 

 

Table 1. 4th Quarter Average Fare 1995-2014, Adjusted for Inflation

 

	Average Fare in constant 2014 dollars ($)	Year-to-Year Percent Change in Average Fare (4Q to 4Q) (%)	Cumulative Percent Change in Average Fare (4Q 1995 to 4Q of each year) (%)
1995	440
1996	412	-6.4	3.3
1997	427	3.7	5.1
1998	453	6.0	6.8
1999	444	-2.1	9.6
2000	459	3.5	13.4
2001	398	-13.2	15.1
2002	401	0.6	17.9
2003	402	0.4	20.1
2004	367	-8.8	24.0
2005	376	2.4	28.2
2006	370	-1.4	31.5
2007	369	-0.4	36.8
2008	386	4.7	37.0
2009	348	-9.9	40.7
2010	359	3.1	42.8
2011	383	6.9	47.0
2012	383	-0.2	49.6
2013	385	0.6	51.8
2014	393	2.0	53.0

Source: Bureau of Transportation Statistics, BTS Air Fares and Origin and Destination Survey

Note: Percent change based on unrounded numbers

 

 

Table 1A. Passenger Airline Revenue from Fares 1990-2014

 

	Revenue from Passenger Fares as Percent of Total Scheduled Passenger Airline Revenue* (%)
1990	87.6
1995	85.6
2000	84.1
2001	82.7
2002	82.3
2003	79.5
2004	76.6
2005	75.0
2006	74.4
2007	74.3
2008	72.9
2009	70.2
2010	71.3
2011	71.0
2012	70.3
2013	70.7
2014 (1Q)	70.2
2014 (2Q)	71.4
2014 (3Q)	71.8
2014 (thru 3Q)	71.2

Source: Bureau of Transportation Statistics, P-12

* Scheduled passenger airline total revenue is the sum of the following Schedule P12 accounts with account numbers: Reservation cancellation fees (3919.1), Baggage fees (3906.2), Miscellaneous Operating Revenue (3919.2), Transport-Related Revenue (4898) and Passenger Revenue (Fares) (3901).

 

 

Table 2. Percent Changes to 2014 in Average Domestic Average Fares and the Inflation Rate* by Year Since 1995

(4th Quarter to 4th Quarter for fares; Sep to Sep for inflation)

 

Since 4th Quarter of ...	Duration in Years	Average Fare in constant 2014 dollars ($)	Percent Change in Average Fare to 4thQuarter 2014 (%)	Inflation Rate Change to Sep 2014
2014		393
2013	1	385	2.0	1.7
2012	2	383	2.6	2.9
2011	3	383	2.4	4.9
2010	4	359	9.5	9.0
2009	5	348	12.9	10.2
2008	6	386	1.8	8.8
2007	7	369	6.5	14.2
2006	8	370	6.1	17.3
2005	9	376	4.6	19.7
2004	10	367	7.0	25.3
2003	11	402	-2.4	28.5
2002	12	401	-2.1	31.5
2001	13	398	-1.4	33.5
2000	14	459	-14.4	37.0
1999	15	444	-11.5	41.8
1998	16	453	-13.3	45.5
1997	17	427	-8.1	47.7
1996	18	412	-4.7	50.8
1995	19	440	-10.8	55.4

Source: Bureau of Transportation Statistics, BTS Air Fares and Origin and Destination Survey

* Rate calculated using Bureau of Labor Statistics Consumer Price Index

 

 

Table 3. Inflation-Adjusted Average Domestic Airline Fares by Quarter

Average Fare and Percent Change by Quarter

 

Quarter/Year	Average Domestic Fare (2014$)
	Average Fare in constant 2014 dollars ($)	Quarter-to-Quarter Percent Change in Average Fare (%)
2Q 2011	385	2.9
3Q 2011	373	-2.9
4Q 2011	383	2.7
1Q 2012	382	-0.4
2Q 2012	394	3.1
3Q 2012	372	-5.4
4Q 2012	383	2.8
1Q 2013	381	-0.4
2Q 2013	380	-0.3
3Q 2013	391	2.9
4Q 2013	385	-1.6
1Q 2014*	382	-0.7
2Q 2014*	396	3.5
3Q 2014*	396	0.2
4Q 2014*	393	-0.9

Source: Bureau of Transportation Statistics, BTS Air Fares and Origin and Destination Survey

Note: Percent change based on unrounded numbers

* Fares for the most recent four quarters are in current dollars, not adjusted for inflation.

 

 

Table 4. Unadjusted 4th Quarter Average Fares, 1995-2014

 

	Average Fare in current dollars ($)	Year-to-Year Percent Change in Average Fare (4Q to 4Q) (%)	Cumulative Percent Change in Average Fare (4Q 1995 to 4Q of each year) (%)
				1995	288
1996	278	-3.3	3.0
1997	294	5.5	5.2
1998	316	7.7	6.8
1999	318	0.6	9.6
2000	340	7.0	13.4
2001	300	-11.8	16.4
2002	309	3.0	18.1
2003	316	2.2	20.9
2004	297	-5.9	24.0
2005	315	5.9	29.8
2006	318	1.1	32.4
2007	330	3.6	36.1
2008	345	4.7	42.8
2009	320	-7.4	41.0
2010	335	4.7	42.6
2011	368	10.0	48.1
2012	374	1.6	51.0
2013	382	2.1	52.8
2014	393	2.8	55.4

Source: Bureau of Transportation Statistics, BTS Air Fares and Origin and Destination Survey

Note: Percent change based on unrounded numbers

 

 

Table 5. Unadjusted Average Domestic Airline Fares by Quarter

Average Fare and Percent Change by Quarter

 

Quarter/Year	Average Domestic Fare (current$)
	Average Fare in current dollars ($)	Quarter-to-Quarter Percent Change in Average Fare (%)
2Q 2011	370	3.9
3Q 2011	361	-2.4
4Q 2011	368	2.1
1Q 2012	373	1.2
2Q 2012	385	3.2
3Q 2012	367	-4.6
4Q 2012	374	2.0
1Q 2013	378	1.0
2Q 2013	378	0.0
3Q 2013	390	3.2
4Q 2013	382	-2.0
1Q 2014	382	0.0
2Q 2014	396	3.5
3Q 2014	396	0.1
4Q 2014	393	-0.8

Source: Bureau of Transportation Statistics, BTS Air Fares and Origin and Destination Survey

Note: Percent change based on unrounded numbers

 

 

Table 6. Airports with Highest and Lowest U.S. Domestic Average Itinerary Fares 4th Quarter 2014

Top 100 Airports* Based on 2013 U.S. Originating Domestic Passengers

 

Rank	Origin	4th Quarter 2014 ($)
	Highest Average Fares
1	Madison, WI	505
2	Newark, NJ	489
3	Cincinnati, OH	485
4	Jackson/Vicksburg, MS	482
5	Houston Bush, TX	469
	Average Fare at All Airports	393
	Lowest Average Fares
1	Sanford, FL	99
2	Mesa, AZ	112
3	Atlantic City, NJ	170
4	Bellingham, WA	235
5	Long Beach, CA	258

Source: Bureau of Transportation Statistics, BTS Air Fares and Origin and Destination Survey

* Not including Alaska, Hawaii or Puerto Rico

Note: Percent change based on unrounded numbers

 

 

Table 7. One-Year Change by Airport: Top 5 Percentage Increases and Decreases in U.S. Domestic Average Itinerary Fare, 3Q 2013 to 3Q 2014

Top 100 Airports* Based on 2013 U.S. Originating Domestic Passengers, Fares Adjusted for Inflation

 

Rank	Origin	4th Quarter 2013 (2014$)	4th Quarter 2014 (2014$)	Percent Change (%)
	Largest Increases
1	Dayton, OH	374	431	15.2
2	Norfolk, VA	410	463	12.7
3	Jackson/Vicksburg, MS	437	482	10.4
4	Albuquerque, NM	357	393	10.2
5	Knoxville, TN	406	445	9.6
	Average Fare at All Airports	385	393	2.0
	Largest Decreases
1	Cleveland, OH	462	413	-10.6
2	Washington Dulles	509	462	-9.2
3	Savannah/Hilton Head	484	441	-9.0
4	Houston Bush, TX	501	469	-6.5
5	Cincinnati, OH	514	485	-5.7

Source: Bureau of Transportation Statistics, BTS Air Fares and Origin and Destination Survey

* Not including Alaska, Hawaii or Puerto Rico

Note: Percent change based on unrounded numbers

 

 

Table 8. 14-Year Change by Airport: Top 5 Percentage Increases and Decreases in U.S. Domestic Average Itinerary Fare, 2000-2014

Top 100 Airports* Based on 2013 U.S. Originating Domestic Passengers, Fares Adjusted for Inflation

 

Rank	Origin	4th Quarter 2000 (2014$)	4th Quarter 2014 (2014$)	Percent Change (%)
	Largest Increases
1	Reno, NV	298	362	21.4
2	Houston Hobby, TX	296	347	17.3
3	Burbank, CA	254	293	15.6
4	El Paso, TX	348	401	15.2
5	Spokane, WA	339	377	11.1
	Average Fare at All Airports	459	393	-14.4
	Largest Decreases
1	Bellingham, WA	482	235	-51.2
2	White Plains, NY	744	410	-44.9
3	Atlantic City, NJ	307	170	-44.7
4	Sanford, FL	170	99	-41.9
5	Denver, CO	565	336	-40.4

Source: Bureau of Transportation Statistics, BTS Air Fares and Origin and Destination Survey

* Not including Alaska, Hawaii or Puerto Rico

Note: Percent change based on unrounded numbers

 

 

For air fares for the following airports, go to http://apps.bts.gov/xml/atpi/src/index.xml

 

Multiple airport areas for which a single average fare calculation is available are: Boston, Chicago, Dallas-Fort Worth, Houston, Los Angeles, New York, San Francisco and Washington, DC.

 

Top 100 airports based on 2013 originating domestic passengers:

 

Alabama.	Birmingham
Arizona	Mesa, Phoenix, Tucson
Arkansas:	Little Rock
California:	Burbank, Fresno, Long Beach, Los Angeles Intl, Oakland,
	Ontario/San Bernardino, Sacramento, San Diego, San Francisco, San Jose, Santa Ana (Orange County)
Colorado	Colorado Springs, Denver
Connecticut	Hartford
District of Columbia	Dulles, Reagan National
Florida	Ft. Lauderdale, Ft. Myers, Jacksonville, Miami, Orlando, Pensacola,
	Sanford, Tampa, West Palm Beach
Georgia	Atlanta, Savannah
Idaho	Boise
Illinois	Chicago Midway, Chicago O'Hare
Indiana	Indianapolis
Iowa	Des Moines
Kansas	Wichita
Kentucky	Louisville
Louisiana	New Orleans
Maine	Portland
Maryland	Baltimore
Massachusetts	Boston
Michigan	Detroit, Grand Rapids
Minnesota	Minneapolis/St. Paul
Mississippi	Jackson/Vicksburg
Missouri	Kansas City, St. Louis
Nebraska	Omaha
Nevada	Las Vegas, Reno
New Hampshire	Manchester
New Jersey	Atlantic City, Newark
New Mexico	Albuquerque
New York	Albany, Buffalo, Islip, New York JFK, New York LaGuardia, Rochester, Syracuse, White Plains

 

North Carolina	Charlotte, Greensboro, Raleigh/Durham
Ohio	Akron/Canton, Cincinnati, Cleveland, Columbus, Dayton
Oklahoma	Oklahoma City, Tulsa
Oregon	Portland
Pennsylvania	Harrisburg, Philadelphia, Pittsburgh
Rhode Island	Providence
South Carolina	Charleston, Greenville-Spartanburg
Tennessee	Knoxville, Memphis, Nashville
Texas	Austin, Dallas Love, Dallas/Ft. Worth, El Paso, Houston Bush,
	Houston Hobby, San Antonio
Utah	Salt Lake City
Vermont	Burlington
Virginia	Norfolk, Richmond
Washington	Bellingham, Seattle, Spokane
Wisconsin	Madison, Milwaukee