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Plunging Airfares Hit 2-Year Low

Airlines desperate to fill seats

By Gabriel Winant, Newser User

Posted Mar 4, 2009 10:24 AM CST

(Newser) – The recession is causing a drop-off in ticket sales, which in turn is causing the airlines to make deep fare cuts, reports the Wall Street Journal. According to Travelocity, airfares for the 100 most popular routes have hit a 2-year low, and are priced 40% lower than last June's peak. Good news for travelers, but not so for airlines, who hoped their operations—streamlined when oil prices hit $140 a barrel—would reap big bucks once those prices fell.

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Priceline.com's web page. (Nasdaq: PCLN)

United Airlines first class passengers checks in at San Francisco International Airport in San Francisco, Wednesday, June 4, 2008. (AP Photo/Paul Sakuma)

Economy seats are seen in the new Airbus A380, a double-decker plane flown by Lufthansa. (Getty Images)

In this March 12, 2008 file photo, a Southwest Airlines plane takes off while another taxis on the runway at Los Angeles International Airport. (AP Photo/Nick Ut, File)

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I don't remember a year other than 2001 that we've seen this kind of commotion in airfares. - Tom Parsons, chief executive of Bestfares.com

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Plunging Airfares Hit 2-Year Low