US: Domestic airfares drop to lowest level since 2010

Lower fuel costs and increased competition from low-cost airlines have pushed the price of domestic airline tickets to the lowest level since 2010, according to federal data. The average domestic airline ticket sold in the first 3 months of the year was US$361, down 7.8% from Q1 of 2015, according to the latest data from the US DoT. The price is the lowest Q1 average domestic price since 2010, when it was $359, adjusted for inflation. Lower fuel prices have helped keep airfares down since the end of 2014 while demand for travel has remained steady. The price of a gallon of jet fuel in North America is $1.25, 22% cheaper than a year earlier, according to IATA. Airlines may also be seeing a slight drop in demand from business travellers, which forces carriers to introduce limited-time bargain fares to fill the empty seats. <br/>