commercial airlines

Flying on commercial airline will never be a luxury. Common sense and logic should tell us that the cost of flying on commercial airlines will continue to rise. This assertion is due mainly to two critical issues: (1) high price of fuel oil and (2) airport security. The high cost of fuel has become a major expense for the airline industry. Fuel remains our largest and most volatile costs, says John Heimlich, chief economists for Airline for America. A Deutsche Bank analysis estimated that every penny increase in jet fuel prices on an annualized basis equals additional fuel expense of $170 million for the U.S. airlines industry. In turn, these costs are passed on to consumers.

            Another major area of concern is airport security. Since the 9/11 terrorist attacks, security at airports around the world has become a nightmare for commercial airline passengers. Besides the long lines, waits at airports, removal of articles of clothing, loss of personal privacy, pat downs, airports have been forced to purchase advanced imaging technology and other safety equipment and hire security personnel. These costs have also been passed down to passengers in terms of ticket price increase.

            I am not sure about the assertion that one can now fly on a route for cheaper or equivalent to the cost of driving that route. At one point, it was possible for passengers to travel cheap on start-up airlines. With the availability of capital and lax rules and regulations, many start-up airlines suddenly became available to passengers. These airlines cut into the price of major airlines, but most of them soon went out of business because they did not have sound and well-though out business plans. Finally, raising prices on commercial airlines will change this industry forever. More and more passengers will begin searching for new means of travel.


Cubbin, K. (2009). Airline economics: Is there a formula for success? Cubbin Consulting