Cheaper fuel drives down US air fares for travellers

US air passengers have seldom had it so good with seat prices plunging by 5.6% last month – the sharpest monthly decline in two decades.

Planes re-routed to avoid military exercises along China's southern coast. Image by Frank Kovalchek / CC BY 2.0

Airline prices in the US are falling quicker than any time in the past two decades because of lower fuel prices Image by Frank Kovalchek / CC BY 2.0 Image by Frank Kovalchek / CC BY 2.0

The fall is due to cheaper fuel prices, but the surprise is how quickly that has translated in how much travellers are paying for their tickets, according to the managing partner of Airline Weekly, Seth Kaplan.

And with capacity growing, he predicts that prices may fall even more in the coming months.

CNBC television reports that oil is continuing to trade at its lowest levels since 2009, and the bigger airlines could be tempted to compete with the budget airlines, a factor which would also drive price down for air travellers.

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