Higher Oil Prices, Demand For Flights May Soon Lead To Rising Plane Fares – ‘Lock It In Now'

By Max Darrow, CBS San Francisco:

SAN FRANCISCO INT’L AIRPORT (KPIX 5) – People all over the country have experienced pain at the pump lately. But soon, they may start to experience price hikes when buying plane tickets.

“If oil prices remain at $100 a barrel or higher for a length of weeks or months, yes, we will definitely see an effect on prices,” said Willis Orlando, with Scott’s Cheap Flights. “Although, there are other factors in the market that may moderate them. But at a certain point, airlines are going to have to decide how much do they pass on to consumers, and how much do they eat in the name of competition.”

On Monday, a gallon of jet fuel costed $3.11, according to the Argus Jet Fuel Index. A month ago, it was $2.79 a gallon.

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