Fuel prices keep dropping, but don't expect that to translate to cheaper airfares

http://ift.tt/1A3hS0k //

In the past year, jet fuel prices in North America have dropped about 11%, according to the International Air Transport Association. Globally, prices have dropped about 14%.

As a result, airlines are doing well: Profits in the third quarter of this year are on the rise for major carriers, and the industry is expected to see $8.3 billion in profit for 2014 — a huge increase from $5.8 billion last year.

See also: The Internet Goes to War Over Reclining Airline Seats

Since fuel costs can comprise a third of operational costs for airlines, you might expect ticket prices to go down. But rather than saving on fuel, recent profits are largely due to the extra fees airlines are charging for baggage, seat assignments, on-board entertainment and other extras Read more...

More about Business, Travel Leisure, Airfares, Iata, and Fuel Prices



from MashableJessica Plautz