Friday, February 22, 2008

Airfares from USA to Europe Rise with Fuel Costs

Americans flying to Europe in spring will be paying more — in some cases, a lot more — largely because of skyrocketing fuel costs.

An analysis for USA TODAY of ticket sales through Sabre, the world's largest distribution system, shows that the average price paid through Jan. 31 for U.S.-Europe air travel in April or May was 6.9% higher than during the comparable periods in 2007.

The analysis looked at round-trip sales regardless of fare categories.

Travelers are paying those higher prices despite a 10.3% expansion of trans-Atlantic flying capacity by the airlines. Typically, when the supply of a product rises, prices rise little, if at all.

Delta Air Lines, which has more service across the Atlantic than any other U.S. carrier, increased trans-Atlantic capacity 15.5% over the past year. The airline, for example, added several routes linking its Atlanta base to Vienna, Prague and other European cities.

Chris Spidle, director of research at Sabre Airline Solutions, says the ability to raise prices while expanding capacity bodes well for airlines, if not for their customers.

"We should continue to see a fairly strong pricing environment this year," Spidle says.

Discount travel guru Tom Parsons at BestFares.com says the most budget-conscious travelers heading for Europe this spring will feel the sting the most. The lowest fares have seen the biggest percentage increases over the last year, the effect mainly of fuel surcharges.

"You better have two piggy banks set aside this year if Europe is your dream vacation for 2008," he says.

Example: Chicago-Rome. A year ago, the lowest published fare for travel last April or May was $579, according to Parsons. After a big increase in both the base fare and in the fuel surcharge that's rolled into the quoted price, that same ticket costs $998, a 72% jump.

Like all other international fares, that quoted price does not include security processing fees, local airport taxes and international departure taxes that can add $200 to $400 to the cost of a round-trip flight to Europe.

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