U.S. air travel is “still a tremendous bargain,” according to Delta Air Lines Chief Executive Officer Richard Anderson, despite government figures that show airfares are noticeably higher this year compared with a year ago.
The rise was even steeper for fliers using the Atlanta airport, where Delta has its home hub.
Anderson, appearing Tuesday on “CBS This Morning,” was asked repeatedly whether airfares should be lower given the drop in fuel and oil prices in recent months.
The CEO avoided agreeing with the assumption, saying, “Ultimately, an economist will tell you that lower input costs will equal lower consumer costs.” Anderson said Delta expects its fuel costs to be $2.80 a gallon next year. He added that “a one penny increase in a gallon of jet fuel for Delta is $40 million a year.”
The average domestic fare increased 11.3 percent to $435, adjusted for inflation, at Hartsfield-Jackson International Airport in the second quarter of this year, compared with $391 for the same period in 2013, according to the U.S. Department of Transportation. Hartsfield-Jackson ranked No. 3 behind airports in Atlantic City, N.J. and Alburquerque, N.M., in the rate of gain.
Nationally, the average fare rose to $396, up 2.5 percent from $386 in the second quarter of 2013.
Earlier this month, Delta announced new no-frills “basic economy” fare. Travelers don’t get to pick their seat in advance and are not allowed changes, even for a fee.
The fare option is available on just over a dozen routes from Atlanta.
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