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Author Topic: Mitur admits flights to Dominican Republic “are extremely expensive”  (Read 2214 times)

PoonTangClan

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American Airlines Miami to dr is $600 and up , that is crazy for such a short flight

And that ticket price is definitely not typical. It’s just the busy travel season and airline understaffing at play, mostly.

Prices should start to calm down going into August and beyond, but it will still be higher than usual due to inflation.

It is mainly high fuel costs not inflation and staffing. So, as long as there is a continued fuel embargo against Russia and less fuel production in the US; fuel prices are going to remain high would result in continued high fuel prices.

Uth, what you’re saying is incorrect.

“Airlines under scrutiny for widespread flight disruptions are renewing their criticism of the government agency that manages the nation’s airspace, saying that understaffing at the Federal Aviation Administration is ‘crippling’ traffic along the East Coast.”

https://apnews.com/article/airlines-holidays-transportation-99bf3ad6cc7b44d2a8412b2ce7ad24f8

Where in the article does it say prices were raised because of understaffing. That's the reason for flight cancellation because there is not enough staff (two separate issues). The cost of fuel has risen 100%. That is the main reason for high price airline tickets (the topic of this thread).

Uth,

When the airlines are understaffed, flights get delayed and cancelled. The airlines lose money on delays and cancellations, and these costs are being passed on to consumers. If there are less planes flying, the airlines have to get that lost money back.

Fuel costs are a factor, but it’s not the single factor. Remember that the airlines started charging baggage fees around 14 years ago, which back then, they blamed on rising fuel costs. Fuel costs are nothing new.

jd66

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Fuel costs make up 10%-12% of the operational costs for a flight. 
So an increase in fuel costs adds little to the cost of a flight like MIA to POP
Plus the airlines buy futures contracts to help hedge against the large and quick increase in fuel costs

Demand more than anything is what's driving up airfare right now.
Most airfare is only running 15-20% more than before if you buy it 60-90 days out

Typically 30 days out is the best but even a short time frame can be bought at a bargain if one is in tune with things and knows how to buy it

Most of the cancellations are labor related since so many pilots have retired and they simply have not replaced them. 

uth

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Fuel costs make up 10%-12% of the operational costs for a flight. 
So an increase in fuel costs adds little to the cost of a flight like MIA to POP
Plus the airlines buy futures contracts to help hedge against the large and quick increase in fuel costs

Demand more than anything is what's driving up airfare right now.
Most airfare is only running 15-20% more than before if you buy it 60-90 days out

Typically 30 days out is the best but even a short time frame can be bought at a bargain if one is in tune with things and knows how to buy it

Most of the cancellations are labor related since so many pilots have retired and they simply have not replaced them.

Good that you point out, Buying 30 days out has always been the rule of thumb. This has been the case before the staffing shortage and fuel increase. Of course, as you get nearer to date of travel it will be more expensive. So if you are buying three or two weeks out, that $600 dollar airfare will be close to $1,000. The majority of people don't understand the time you purchase your airline ticket is what determines the fare. There were some instances when I was able to get a good deal, by purchasing airline ticket the night before the departure date. But, this only happens if the airline didn't fill all the seats and has a lot of seats available, Taking your fuel costs being 10% - 12% of flight.  Fuel costs have risen 100%. Do the math.  No hedging on futures contracts is gonna be significant enough to overcome that price shock.

PoonTangClan

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Of course, it’s always best to book in advance, but sometimes that doesn’t make a huge dent in ticket costs during peak travel times.

Take the month of July for example. I’ve been eyeing potential July travel dates since May, and ticket prices are still high to go wherever. A whole lot hasn’t changed.

MACK

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American Airlines Miami to dr is $600 and up , that is crazy for such a short flight

And that ticket price is definitely not typical. It’s just the busy travel season and airline understaffing at play, mostly.

Prices should start to calm down going into August and beyond, but it will still be higher than usual due to inflation.

It is mainly high fuel costs not inflation and staffing. So, as long as there is a continued fuel embargo against Russia and less fuel production in the US; fuel prices are going to remain high would result in continued high fuel prices.

BS.....that is only a small part....prices jumped during covid..operation cost rose and they are also trying to make up lost profit margins

Fuel is a operation cost. Planes don't run on air.

operational cost is more than just fuel dick head...smh how old are you? You must be a kid or your just stupid

I can tell you never ran an actual business like myself

Wow. Name calling. The question is "how old are you". Calling someone a "dick head" because you disagree is a sign of immaturity. Key word "is a". You stated fuel costs were only a small fraction of the price jump, which is factually not true. But believe what you want. If you ran a business, you would know increased fuel prices increases everything from Food, goods, and other items that have to shipped to reach consumers.

You've never ran a business I can tell...any breakdown I give you after this you won't even understand it or what's going on....

MACK

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Fuel costs make up 10%-12% of the operational costs for a flight.
So an increase in fuel costs adds little to the cost of a flight like MIA to POP
Plus the airlines buy futures contracts to help hedge against the large and quick increase in fuel costs

Demand more than anything is what's driving up airfare right now.
Most airfare is only running 15-20% more than before if you buy it 60-90 days out

Typically 30 days out is the best but even a short time frame can be bought at a bargain if one is in tune with things and knows how to buy it

Most of the cancellations are labor related since so many pilots have retired and they simply have not replaced them.

Thank you I knew I wasn't the only on this board with some business sense

Jazzy2019

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Of course, it’s always best to book in advance, but sometimes that doesn’t make a huge dent in ticket costs during peak travel times.

Take the month of July for example. I’ve been eyeing potential July travel dates since May, and ticket prices are still high to go wherever. A whole lot hasn’t changed.

That's been my experience recently. The airlines are trying to maintain pricing discipline. At best they seem to be dropping prices around 15% for a couple of days. I suggest getting the airline app, setup your itinerary then check prices on a daily basis. When you see a plus 10% drop it's probably the time to buy. Remember most aren't charging change fees so anyone who bought high can rebuy lower and get a flight credit for the ticket difference. Because of that it's in their interest not to drastically drop prices. With all the cancellations it's better to buy your ticket from the airline you're flying. If you purchase from a 3rd party site you're in for a big hassle if you flight is cancelled since you'll need to call them to get rebooked.

jd66

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Fuel costs make up 10%-12% of the operational costs for a flight. 
So an increase in fuel costs adds little to the cost of a flight like MIA to POP
Plus the airlines buy futures contracts to help hedge against the large and quick increase in fuel costs

Demand more than anything is what's driving up airfare right now.
Most airfare is only running 15-20% more than before if you buy it 60-90 days out

Typically 30 days out is the best but even a short time frame can be bought at a bargain if one is in tune with things and knows how to buy it

Most of the cancellations are labor related since so many pilots have retired and they simply have not replaced them.

Good that you point out, Buying 30 days out has always been the rule of thumb. This has been the case before the staffing shortage and fuel increase. Of course, as you get nearer to date of travel it will be more expensive. So if you are buying three or two weeks out, that $600 dollar airfare will be close to $1,000. The majority of people don't understand the time you purchase your airline ticket is what determines the fare. There were some instances when I was able to get a good deal, by purchasing airline ticket the night before the departure date. But, this only happens if the airline didn't fill all the seats and has a lot of seats available, Taking your fuel costs being 10% - 12% of flight.  Fuel costs have risen 100%. Do the math.  No hedging on futures contracts is gonna be significant enough to overcome that price shock.

Ok lets do the math on the high end

MIA to POP generally uses the 737-800 aircraft or A319
It appears to burn on average 750 gallons per hour

That flight round trip is lets say 3 hours flying time so about 2,200 gallons of fuel burned.

The average price of jet fuel in January 2022 was $2.46 a gallon 

A 737-800 typically has about 165 seats

So 2,200 gallons X $2.46 gallon = $5,412 / 165 or $33 per passenger

So now let's take you assumption that the airline fuel purchasing manager was not on their game and the price of fuel went up 100% or doubled to $4.92 a gallon which would now put that jet fuel at $10,824 / 165 or $66 per passenger.

So even by the math if fuel prices double that flight would only go up by a little over $30 per passenger.

Adjust those numbers how ever you want it will never amount to very much.

Even a 20% increase in those numbers doesn't change the end result much on a per passenger basis.



boogyfan

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Airlines full of it...can't blame fuel costs.  As many airlines hedge fuel . Aka..buy in advance at a set price. So most are not affected by rising gas prices. So what's really behind these crazy prices. My chicas want to know...cause they tired of me being cheap cheapy. 😉

El_lobo00

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Airlines full of it...can't blame fuel costs.  As many airlines hedge fuel . Aka..buy in advance at a set price. So most are not affected by rising gas prices. So what's really behind these crazy prices. My chicas want to know...cause they tired of me being cheap cheapy. 😉

Yep the airlines laid off many pilots and other staff and can’t scale back fast enough to meet demand smh. A lot of those folks either retired or got better opportunities and won’t be coming back.

tugboaboat5393

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Re: Mitur admits flights to Dominican Republic “are extremely expensive”
« Reply #25 on: October 30, 2022, 05:11:07 PM »
Airlines are there to provide service and to make a profit to share with there stock holders DIVIDENS !  fill every tiny seat streamline operations, and you wonder why you get that tiny little biscuit or pretzels!
 

 







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