Study: Airline fares rising faster than inflation

The price of airline tickets is increasing at a faster clip than inflation in the rest of the U.S. economy, according to a study that reported on Tuesday by the Associated Press. 

The study, conducted by the Airlines Reporting Corp., found that the average price of airline fares have increased by 10.7 percent since 2009, compared to a 2.1 percent overall U.S. inflation rate. 

The group said the average cost of a domestic airline ticket was $509.15 for the first six months of 2014, according to the report. 

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“Airlines have reduced the number of seats while more people want to fly because of the economic recovery. All this leads to higher airfares,” ARC Managing Director of Data and Analytics Chuck Thackston said. “This trend in airfares is likely to continue for the near future, as the economy continues to grow.”

The study attributed the increase in the cost of airline travel to factors such the consolidation of the U.S. airline industry and the rise in a la carte fees for baggage and on-board services in recent years. 

The study found that the average hotel price was also rising, going from $109.33 in 2013 to $113.80 in the first half of 2014. The increase represented a four percent increase in the amount that is being paid for lodging by travelers, according to the report.