Airfare from London area to Washington DC in July - why the massive increase? [closed]
I'm from the DC area and have noticed in the last two years airfares in the summer have gone from £600ish round trip to over £1000.
What is going on?
I thought with the oil prices plummeting we would have seen some decrease but this is ridiculous for economy seats!
Best Answer
Could well be illegal price-fixing - in other words, a cartel.
US airlines face a price-fixing probe amid allegations that they colluded to keep fares high.
The US Justice Department confirmed that it is investigating some carriers over "possible unlawful coordination".
The Business Travel Coalition welcomed the move by the Department if Justice which could prove “illegal co-ordination” to restrict capacity in domestic US, transatlantic and other international markets.
US airlines in competition probe over alleged price-fixing, travelweekly, 2 July 2015
"We are investigating possible unlawful coordination by some airlines," Justice Department spokeswoman Emily Pierce confirmed to USA TODAY
Airline 'capacity discipline' in spotlight after Justice probe, USA Today, 1 July 2015
Now, the surviving quartet of US airline giants – American, Delta, United and the discounter Southwest – are coming under increased scrutiny for “unlawful coordination” on price-gouging. But airline insiders and legal analysts say the government’s case against the industry will be near-impossible to prove – indeed, that the feds have known about potential ticket schemes for years and have not been able to fight back against lobbyists fighting to bring the transportation business back from the post-9/11 brink.
“It’s de facto collusion,” said Charles Leocha, president of Travelers United, a consumer advocacy group. “Flights are full, and the airlines have become very good at signaling their strategy” to their not-so-arch rivals, he added.
Airline collusion: it's nothing new and will be difficult to prove, analysts say, The Guardian, 3 July 2015
“When airline industry leaders say they’re going to be ‘disciplined,’ they mean they don’t want anyone to expand capacity,” said Fiona Scott Morton, professor of economics at Yale and a former deputy attorney general in the antitrust division of the Justice Department. “And when there aren’t enough seats, airlines raise prices. That’s what we’ve been seeing.”
Christopher L. Sagers, an antitrust professor at Cleveland-Marshall College of Law and an airline industry specialist who opposed the American-US Airways merger in testimony before Congress, said that sort of talk at a conference of direct competitors in a concentrated oligopoly is a huge legal risk.
“I don’t see a smoking gun,” Mr. Sagers said. “But they’re all but saying you need to limit output to keep up prices.”
... Professor Scott Morton recently co-wrote a study of airline industry competition that concluded the major airlines were stifling competition by restricting the ability of consumers to use the Internet to compare airfares.
‘Discipline’ for Airlines, Pain for Fliers, New York Times, 11 June 2015
There's a pretty strong history of price-fixing in the airline industry, and on UK<->US routes specifically, if I remember correctly. So if this is price-fixing then it wouldn't be at all unprecedented.
It's pretty clear that the airlines are working together to keep capacity down (and therefore keep prices and profitability up), whether or not that actually constitutes price-fixing according to the legal definition.
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Are flights going to get cheaper soon?
There's no clear trend line. Flight prices are constantly changing, minute-by-minute. The big picture forces that have pushed some flight prices higher could change at any moment. But here's the thing: Cheap fares are still out there for the spring and even out into summer and fall of 2022.What is the cheapest airport to fly into Washington DC?
BWI most travelers will prefer to flying into DCA because it is the closest to the National Mall, Arlington, and downtown Washington, D.C. Often travelers will find that flying into Washington, D.C. through Dulles or BWI is cheaper.How long is flight from UK to Washington DC?
Flight duration When you fly to Washington D.C. direct from London Heathrow, you'll arrive at your destination in 7 hours and 55 minutes.Why is it cheaper to fly further?
Re: Why is it cheaper to fly further? Yes it's all to do with market forces and supply/demand. Non stop routes are convenient and so you pay more for that convenience. Indirect routes are less convenient and so you get a price break.HOW TO FIND CHEAP FLIGHTS - My Best Tips After Booking 500+ Flights
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