Las Vegas Sun

March 29, 2024

Flights to Vegas among the cheapest in the nation

An airfare comparison report issued by the U.S. Department of Transportation confirms some pricing trends most local travelers already knew -- that flying in and out of Las Vegas is usually a pretty good deal.

Airlines make less money on flights to Las Vegas than anywhere in the nation, with an average yield of 9.3 cents per passenger. The yield is computed by dividing the average fare by the average passenger trip length.

The new DOT report, made available on the Internet, was hailed by consumer advocates but criticized by airlines, which stressed the data is old and doesn't take into account a number of pricing variables that could make an impact.

The website address is http://www.dot.gov/ost/aviation. It's the first time the regular report has been made available online. The lag time occurs because much of the information in the most recent fare information is considered proprietary in the highly competitive airline industry.

The primary focus of the comparison report is to show discrepancies in airfares with regard to the distance between various cities. In the report, pairs of cities are grouped by the distance between them.

For example, in the 201-250 mileage block, the nonstop distance between Pittsburgh and Washington, D.C., is listed as 205 miles and the average airfare is $240. In the same grouping, the distance between Las Vegas and Los Angeles is listed as 236 miles and the average fare is $52.

In nearly every mileage block, Las Vegas destinations ranked in the lowest 10 percent by fare, the study shows.

Although the focus of the report is to call attention to areas where airlines charge more to fly the same distance, several other statistics are listed in the report, offering consumers insights into how many passengers a day fly between various cities, which airlines have the greatest market share in a given route, how much the average cost of a ticket is and which carriers offer the lowest fares.

Airline deregulation has been good to Las Vegas, with low fares available in most of the city's 53 destinations listed in the report. The prominence of Dallas-based discounter Southwest Airlines and Phoenix-based America West, which has the bulk of its low-cost flights at night, has given Las Vegas an inside track on low fares, analysts say.

According to comparison data from the third quarter of 1995, the average airfare has fallen $10 to $89, the average distance a passenger travels to get here has increased 12.4 percent to 959 miles and the profit margin for flights to Las Vegas is the lowest in the nation. With a yield of 9.3 cents per passenger, only Seattle (11 cents), West Palm Beach, Fla. (11.2 cents), Fort Lauderdale, Fla. (11.6 cents), Phoenix and Colorado Springs, Colo. (11.7 cents each). The highest yield reported came from flights to Charlotte, N.C., where airlines made 30.5 cents per passenger.

Las Vegas' position could get even better in future reports, since Shuttle by United, the United Airlines discount carrier, has added operations since report data was gathered and Delta Air Lines has stepped up its night flights to challenge America West.

On a list of 63 city pair markets with the largest percentage decrease in fares from the third quarter of 1995 to the third quarter of 1996, Las Vegas was involved in eight. The biggest decrease: flights to Orlando, Fla., where the fare fell 46.7 percent to $114. At the same time, the number of passengers to Orlando increased 138.2 percent to 48,208 passengers.

Other Las Vegas destinations with big fare decreases: Cincinnati, down 42.5 percent to $146; Nashville, Tenn., down 41.1 percent to $103; Tampa, Fla., down 37.6 percent to $116; New Orleans, down 37.1 percent to $122; Buffalo, N.Y., down 34.6 percent to $138; San Antonio, Texas, down 33.9 percent to $80; and Spokane, Wash., down 33.3 percent to $86. For each city, traffic was up a minimum of 40 percent.

Only one pairing with Las Vegas was among the 11 listed as having the largest percentage increase in fares from 1995 to 1996. One-way tickets between Las Vegas and Dallas-Fort Worth increased 37.3 percent to $173 during the period.

American Airlines has a 49 percent market share and charged $209 on the route while competitor America West was the low operator with $129 tickets. Southwest Airlines is prohibited from serving Dallas directly from outside Texas and four surrounding states by the Wright Amendment, a federal law enacted in 1979 to curb competition to then-fledgling Dallas/Fort Worth International Airport. Southwest operates from Dallas' Love Field.

Airlines aren't happy with the wide distribution of the report because they feel consumers will be misled by some of the information provided. Fare data is six to nine months old and there have been numerous changes in schedules and pricing since the winter.

Carriers also point out there there's more behind pricing a ticket than distance. Airlines consider volume, competition and the types of planes available to them to meet the schedule.

The data isn't comprehensive enough for travelers to arrive at accurate conclusions, said Northwest Airlines spokesman Jon Austin.

"It doesn't take into account the difference in markets such as demand, size of the city and strength of the economy there," Austin said. Those factors also determine fares, he said.

The data also doesn't account for nonstop flights or distinguish between full- or limited-service flights, said Bill Berry of Delta Air Lines.

But some travelers say the report will help them seek the best fares. "Instead of relying on a travel agent, I'll be able to see who has the best fares," said Seattle computer consultant David Sweeney.

USA TODAY contributed to this report.

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