Why Its Time to Drive, Not Fly

Why Its Time to Drive, Not Fly

Gas prices have been falling dramatically over the past few weeks. Drivers who have been putting up with $4-per-gallon prices for most of the summer have welcomed the trend, due to a $50+ decrease the price of barrel. But airfares continue to remain high and experts have predicted an even pricier winter. Airlines have been affected by high gas prices as much as drivers. So why don't cheaper prices translate to cheaper fares?

Because they have cut flights, airlines have been able to fill their existing flights to near capacity. With the supply-and-demand seemingly balanced for the time being, airlines have little reason to cut fares. They will most likely try to recover from a year that has been less than perfect in terms of business.

Therefore, many people are taking advantage of cheaper prices at the pump by choosing to drive rather than fly. Most airlines say ticket sales are down for the coming holiday season. Thanksgiving, typically one of the year's busiest flying days, might see more people on the road and a lackluster day for airlines, most of whom are cutting flights and raising the prices on tickets that are still available.

It is too early to say that the low gas prices are here to stay. Few drivers thought $4 per gallon prices were possible a few years ago. The rise in prices has left most people thinking that anything can happen at the pump. However, it appears that gas prices will remain at or under $3 per gallon for the time being. As long as the economy continues to be shaky, prices should remain relatively low.

Next year might bring cheaper fares. Southwest Airlines is expanding its services to several new cities, including Minneapolis, next spring. This could bring cheaper prices and increase competition that could lead to a downward trend in airfares.