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Airlines have a lot of secrets so you can’t get cheap flights and get away with it. That’s why we conducted a thorough investigation to end the mystery and open up the airlines’ top secret dossiers, all for the sake of your pocketbook.
Logic dictates that Fridays and Sundays are the preferred days for both leisure and business travelers, since being a weekend, they can take better advantage of their days. Tuesdays or Wednesdays are the least requested days, which is why several airlines even offer discounted tickets. This tactic will allow you to get cheap flights saving between 10% and 40% of the total cost of your ticket.
If you found a cheap flight and you are traveling with your partner or family, always check the price of the ticket as if you were traveling alone. It often happens that if you buy several seats at the same time, there may not be as many seats available at the same fare.
Some airlines allow you to change the currency with which you will pay for your seat on the plane and certain currencies may have a higher value than others. Sometimes it is better to pay in dollars rather than pesos if you are flying with an international airline.
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Francisco Madrid, director of the Anahuac Center for Tourism Research and Competitiveness (Cicotur), explains that there are three factors behind the increase in the cost of flights. The first two have to do with the current situation. On the one hand, the figures correspond to the summer period, a generally high season, which, in addition, adds a trend in the recovery of prices as part of an increase in demand.
“Within an airline, one of the main cost components is fuel. Nobody likes to charge high prices, but it seems to me that, as a whole, these elements explain the trend,” said Madrid.
This coincides with data from Mexico. According to the National Producer Price Index (INPP) in June costs grew 79% in the air transport sector, reaching their highest level since December 2018.
When comparing the evolution of consumer prices and producer prices, a close relationship between the two can be seen, which derives in the fact that the growth in costs has a direct impact -although in smaller proportion- on ticket prices. An example is the month of May, where consumer prices rose 51.5% as a result of a 79% increase in airline costs.
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Of the fifteen service sector activities for which the INE calculates price indexes, seven of them cut their year-on-year variation rate in the first quarter and eight increased it. This is revealed by the Services Sector Price Index, whose objective is to provide indices every three months of the evolution of the price of services provided to companies by each of the sectors from the producer’s point of view.
On the upward side, advertising stood out, which raised its annual rate by almost five points, to -2.7%, and information services, which increased its interannual rate by almost 3.5 points, to 1.2%.
Executives at most major airlines said the recovery in domestic leisure travel is here. That means yields, which measure how much passengers pay per mile traveled, are up more than airlines had forecast.
“Domestic leisure [travel] will be restored to 100% in June, with bookings above 2019 levels and yields essentially recovered,” Glen Hauenstein, president of Delta Air Lines, said at the Wolfe Research conference.
United , which is due to speak at the conference later in the day, said in a presentation that overall yields on tickets booked this month for travel in May and June are already near 2019 levels.
That doesn’t mean airlines have returned to profitability, although several have said they have stopped spending cash as they did for most of 2020 and early 2021.
It’s hard to be profitable on domestic leisure travelers alone, said Philip Baggaley, chief analyst at Credit, which covers airlines for Standard & Poor’s. However, recovering this part of its business remains important.