Category Archives: US Airline Industry

Sky-High Airfares Have DoJ Investigating Airlines

Airlines in the US facing high fuel prices thanks to the triple-digit prices of oil passed those rising costs along to consumers in the form of increased airfares. When oil prices began dropping in 2014, car drivers saw decreases at the gas pumps. But air travelers continue to pay high fares.

Those higher fares appear to be uniform across the US airline industry. That raised alarms with the Department of Justice, resulting in the opening of an investigation into possible collusion between carriers. The DoJ confirmed this in a statement noting they are looking into “possible unlawful coordination by some airlines.”

Keith Mann mentions that higher airfares could also be the result of deliberate efforts coordinated by the airlines to limit the number of available seats to the flying public. Constricting supply increases demand and enables charging of much higher prices than one might believe possible considering lower current fuel prices.

Members of Congress also shared their concerns about higher airfares. New York Senator Charles Schumer said, “It’s hard to understand, with jet fuel prices dropping by 40 percent since last year, why ticket prices haven’t followed.”

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