Domestic Airfare Index Edges Higher

The U.S. Department of Transportation's Bureau of Transportation Statistics today said the Air Travel Price Index rose 0.6 percent in the first quarter of 2004, compared with one year earlier, and nearly 2 percent versus last year's fourth quarter. The index, which measures changes to domestic airfares, reached its highest level since early 2001.

Individual markets outside of Hawaii with the largest year-over-year increases included Richmond, Va., Charleston, S.C., Columbus, Ohio, and Buffalo and Syracuse, N.Y. Other large markets experiencing fare increases included Kansas City, Pittsburgh and Chicago. Markets with the greatest fare declines included Orange County and Long Beach, Calif., Boston, Las Vegas and Miami.

The ATPI measures aggregate changes in airfares paid by travelers on U.S. carriers' flights originating in the United States, versus a 1995 baseline. Though the most recent index indicated airfares are at their highest level in three years, the index still was 7 percent below peak levels observed in the first quarter of 2001.