The Observer Newspapers | Cost of Airline Tickets to Rise This Fall

June 27, 2008

Cost of Airline Tickets to Rise This Fall

By Leslie Perales
Observer Staff Writer

Area residents can expect the price of flights to increase this fall, said James Bennett, president and CEO of Metropolitan Washington Airports Authority, during a meeting with the Committee for Dulles on June 19. Bennett said international traffic is continuing to grow, but domestic flights are down. Tickets are being sold for less than usual and airlines are losing money on ticket sales due to lack of demand, he said.

"The U.S. airlines are trying to pull about 20 percent of the seats out of the domestic air transportation system," he said. "They're doing that so that they can better price their product and sell tickets at a profit, or at least break even, versus selling tickets at a loss."

He said these changes would allow the airlines to create higher demand for the number of seats in the system. If demand increases, the airlines can raise ticket prices, Bennett said. "They're getting rid of those three or four vacant chairs, getting those out of the system, so that demand will exceed the capacity in the domestic air transportation system and then they can raise fares," he said.

During the meeting, Bennett also discussed the Metro extension to Dulles. He said the project has had some issues to overcome, but MWAA is doing everything it can to ensure that plans move forward for the Silver Line. "We're very committed to advancing the Dulles corridor," he said. Preparations and utility work are already underway for the first phase of the project, which extends to Wiehle Avenue in Reston, and the project's second phase, which would bring the Metro to Dulles airport, will receive more attention once construction begins on the first phase, Bennett said.

Bennett also talked about improvements to the Dulles airport, and he said the fourth runway that has been under construction would open later this fall. MWAA has already completed improvements to the parking garages and the main terminal, and the AeroTrain system is expected to open in late 2009, he said. "We're in the process of putting in the elevators and the escalators and the finishing touches on all of these train stations in preparation of an opening next year," Bennett said.

Bennett said some airports have been affected by changes in the economic with about 30 communities losing domestic flights, Dulles and Reagan airports should not be impacted by the economy as much. He said Dulles airport had its second best year in history in 2007 when it served 25 million passengers and Reagan saw its best year ever with 19 million travelers in 2007.