Air fares might go down, but trips will still cost more

Air fares may decrease in 2009, although fees and surcharges can significantly add to the costs of flying, according to a new report Wednesday from American Express Business Travel.

After the rise in fares in 2008 and with economic weakness forecast for 2009, “there’s a good likelihood that we’ll see reduction in air fares on domestic economy fares,” said Frank Schnur, American Express Business Travel vice president of global advisory services. .

Whether fares increase or decrease will depend on supply and demand, fuel costs and other factors.

Although fare increases may abate, American Express expects the cost of the average domestic trip, including air fare, car rental and hotel to increase by $31 to $1,139. The average cost of an international trip is forecast to increase by $147 to $3,556. Baggage fees, dining, airport parking and package shipping can add about $400 to the cost.

Corporations are trying to limit travel and travel expenditures, which may drive down demand.

Companies are “starting to adjust their policies to include all the elements of a business trip – things like what type of lunch or dinner you have while you’re on the road,” and which fees charged by airlines will be reimbursed, Schnur said.