Oil prices have jumped again, which isn’t surprising. It also isn’t surprising that airlines have increased their prices on tickets in response to higher fuel prices.
Farecompare.com chief executive Rick Seaney has been cited saying that major carriers in the US increased fares by $10 on domestic flights over the weekend, which is the 4th fare hike this year already. This has lead to domestic airfares being about an average 12% more than the same time last year, he noted. The recession just ended and recovery just started, he explained, but people are still watching how much they spend.
The rise in airfares are needed at airlines so that they cover the cost of rising fuel prices. Oil costs are likely to continue rising with the current turmoil in the Middle East and North Africa, where Libya is a big provider.
However, this rise in oil isn’t only affecting the price of airline tickets. Drivers everywhere are being affected as well. The US population is rather dependent on personal vehicles to commute to work, as well as to do other usual activities. The price of fuel has been rising, and it’s not going unnoticed. The average price at the pump is $3.19 a gallon, which is the most expensive since October 2008.
The high price of fuel in the US helped to spur the recession, prompting less people to travel – whether it was by air or road. If this continues, it could send the country’s economy into another downward spiral. However, the US isn’t the only country that will suffer from the rises.