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Tue, Apr 14, 2009

Airfares Continue Freefall In Gloomy Economy

Checking Bags Could Cost More Than Air Fares

As airline passenger volume has fallen more quickly that the carriers could cut capacity, something of a price war has broken out as the airlines compete to fill empty seats. The result is terrific spring and summer fares you could not have booked back in January.

The Wall Street Journal reports that, ironically, the new added charges for checked bags could cost you more than the base fare on some domestic flights in the US.

One example: American Airlines would fly you from Chicago to Minneapolis last week for $88. Two checked bags: $100.

At only 3.3 cents per mile, it's also much cheaper than driving between those two cities. Even if you add two checked bags and drive an economical car, the plane ticket still wins... right up to the point you must arrange transportation at your destination, anyway.

Even last-minute airfares have been dirt cheap lately. So, when will consumer confidence improve, and how far ahead should you book your flight?

Tom Parsons, chief executive of Bestfares.com, says seats for late-2009, which are still pricey, are bound to fall if you wait. "Don't touch fares for November and beyond. I don't see where this economic climate is going to turn around that fast, and those seats need to be sold."

The airlines, on the other hand, would really, really like you to book those seats now...

FMI: www.bestfares.com

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