Been Dreaming of Travel? Air Fares Are in Descent

Advertising Disclosure: When you buy something by clicking links on our site, we may earn a small commission, but it never affects the products or services we recommend.

Image Not Available

Pinpointing the best time to purchase a plane ticket is an inexact science at best.

But if you’re planning a trip, now really might be a good time to buy.

According to the July Consumer Price Index, airline fares dropped 8.5 percent from June to July, the biggest single month decline since December 1995. Overall, airfares are down 5.6 percent over the past 12 months.

Fares could get even cheaper later this month and into early September as the busy summer travel season comes to a close, MarketWatch reports.

The drop in ticket prices is likely due to the recent steep decline in oil prices.

“Some analysts also speculate that a federal probe of possible industry collusion on ticket fares may have caused airlines to restrain prices,” MarketWatch said.

Although cheaper airfare is a win for consumers, it’s not good news for airlines, despite the fact that they’re raking in record profits, The Wall Street Journal reports.

Costs have dropped sharply for airlines, pushing profits higher. But a decline in ticket prices has hurt the companies’ unit revenue, which measures the amount of money taken in for each passenger flown a mile. Investors remain fixated on that metric, which has slumped this year and may not turn around until 2016. They are watching for signs that airlines are responding to better times by over expanding, setting up another downturn.

If you’re looking for more information on the best time to book airline tickets, click here.

Do you have any tips on getting a good price on plane tickets? Share your experiences below or on our Facebook page.

Get smarter with your money!

Want the best money-news and tips to help you make more and spend less? Then sign up for the free Money Talks Newsletter to receive daily updates of personal finance news and advice, delivered straight to your inbox. Sign up for our free newsletter today.