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We talked about travel deals to Europe and right now we want to talk about the high price of airline tickets to -- -- Joining the company is born -- with airline forecasts dot com.
-- always a pleasure to have you back and I wanna -- a very simple question.
The price of -- has come down -- lost the price of jet fuel has come down a loss.
But airline ticket prices and all the other things you have to pay -- to get on a plane has not come down -- -- -- come down and rule can you tell me why.
Well for other the average -- in 2012.
All prices and jet fuel prices -- higher than 2011.
Now for the month of June.
All prices down about 70%.
But the cost -- refinery.
The final call had a come down as much -- you know prayers and apparently with paying an -- a leg to fly anyway.
I don't see any rate even though there's a break with oil prices -- -- -- breaking jet fuel prices over the past month one it was last.
I think fares will come down if oil averages the mid eighties that it's averaging this month for the rest year.
The economy really -- here we have.
I did I completely disagree with -- -- that that is -- the opposite of what's gonna happen these airlines finally.
Are making profits and they're gonna hang on about a matter what can you you can I'll I'll I think and -- are gonna come down for the -- I -- I summer I'm all ideas and.
Read economies a little soft.
Airlines have X amount of capacity out there and load factors fall fares will follow live cattle down plane that -- got like four I already -- the level right factors are in the mid 80% range that's 50% in.
And as demand falls off a little bit because a softer economy.
Airlines will follow fares will follow.
Fuel and load factors down this is like night follows day will be the case I agree though these lower fares will.
If they happen which I believe they will may be in -- three to 5% range they'll will be temporary because higher labor cost about.
Higher security costs a 1000000005.
From the government will ultimately.
A result in no lower fares time so -- so let's let's be very clear here.
The industry is concentrated quite dramatically yet the unemployment percent of -- is that this does do well -- 0% increase in in this so called her Fidel index in terms of market concentration.
Air fares always follow.
Fuel -- a high correlation there about 87%.
Of go on Block's ability affairs follows the flexibility I'm at a time or.
You know tell me what I -- -- because I wanna go on a -- -- with my large family out of luck and a nominal like -- here's -- here's a good point although all prizes jet fuel prices.
This month over the average for the year on annualized basis.
You know actually net out maybe four billion that roughly be -- -- lower -- time.
Of them you're shelling out of temporary on this -- that anyone could well we'll have you back message you're right thank you very much -- -- won't -- to see you think might take.
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