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FAA Forecasts High Airfares For the Rest of This Decade

The Federal Aviation Administration (FAA) released its annual economic analysis of the airline industry and has said that airfares will continue to remain high throughout the rest of this decade.  Even though the number of passengers traveling is growing, overall flight capacity is down and this will keep the airfares high.  What passengers need is for their to be more competition between airlines, but that won’t happen for a number of years.

In addition, the near future will see more airline mergers and downsizing, which will mean fewer and fewer cities will be serviced and there will be fewer overall flights throughout the nation.  While airline travel is expected to double in the next 20 years, in the short-term it will shrink.  In fact, the long-term forecast looks good, with the number of miles flown by passengers growing from 815 billion in 2011 to 1.57 trillion in 2032.

See the original Google News article for more details.

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