Air fares rise in Atlanta, nationally

By Kelly Yamanouchi

The Atlanta Journal-Constitution

Air fares are climbing again, as travelers return to the skies and airlines try to boost revenues.

Atlanta air fares increased 6.9 percent in the first quarter of this year compared with a year earlier, according to the U.S. Bureau of Transportation Statistics. That's larger than the national increase of 4.7 percent, and it's the first increase in first quarter average fares in Atlanta since 2007.

The average Atlanta fare was $355.65 in the first quarter of the year, up from $332.76 in the same period of 2009 and higher than the national average of $328.12. But the average Atlanta fare is still lower than first quarter levels in 2007 and 2001.

"Coming off some pretty steep lows.... those are still pretty nice prices for people out of Atlanta," said Rick Seaney, CEO of FareCompare.com.

The average fares are for domestic round-trip flights, or for one-way flights with no return trip. But they do not include other fees charged on the aircraft or at the airport, such as baggage fees.

The Air Transport Association, an airline lobbying group, said ir fares have returned roughly to 1999 levels.

Air fares "have not come close to keeping pace with inflation," said Air Transport Association president James May in a written statement, adding that many airlines have been financially struggling for years.

Atlanta had the 26th highest average fares in the nation in the first quarter. The airports with the highest average fares were Huntsville at $499.59, followed by Charleston, Knoxville, Memphis and Newark.

International fares, which are not included in the federal report, are in some cases up as much as 20 percent to 30 percent from last year, returning to historic norms, according to Seaney. The recovery is "good for airlines like Delta with international exposure," he said.

Looking forward, overall fares typically decline during the slower fall season compared with the summer, but could rise significantly for the holidays, Seaney said.

Aside from rising fares, "I think the area where you're going to see a lot of increases are things like fees," Seaney said.

Average domestic fares in Atlanta for the first quarter

2007 $376.86

2008 $355.07

2009 $332.76

2010 $355.65

Average domestic fares nationally for the fist quarter

2007 $317.84

2008 $333.29

2009 $313.30

2010 $328.12