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How new fees are affecting the Producer Price Index for air travel

BLS, May 2012: “Since 2001, the airline industry has been affected by a number of external shocks, including terrorist attacks, volatile fuel prices, periods of challenging economic times, and an uncertain regulatory environment. In large part because of these factors, the industry has endured years of economic losses—$50 billion between 2001 and 2011—resulting in many bankruptcies and mergers. These losses have led airlines to focus on revenue-management strategies. One important way airlines have generated additional revenue is by adding surcharges and/or increasing ancillary fees for optional services or a la carte pricing.”

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