The Reasons That Airlines Boost Fees Rather than Fares

When the rising price of fuel boosts airlines’ costs, they can buoy their bottom line by increasing optional and barely noticeable fees or raising fares.

Marginal Utility: Airline Fares and Fees

On my recent flight to San Francisco, I had baggage fees and reservation change fees. My exit row cost me more and if I not brought my banana and yogurt, I would have had to pay for food. I was…

Pricing Airline Tickets

During the 1970s, a ticket to fly between New York and Washington, D.C. cost $50 whereas one between Los Angeles and San Francisco-almost twice the distance-cost only $40.  Why? Before deregulation in 1978, the interstate airline industry was subject to extensive…