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01 / 05
Flying Gets Cheaper as More People Fly

Blog Post | Air Transport

Flying Gets Cheaper as More People Fly

Since 2000, US airfare time prices decreased by 49 percent while passenger enplanements grew by 51 percent.

Gale L. Pooley —

Summary: In the United States, flying has become both cheaper and more common over the past 25 years. Airfares have grown more affordable relative to wages, while the number of people traveling has risen sharply. Despite setbacks from crises like 9/11, the 2008 recession, and the pandemic, air travel today is far more accessible and abundant than at the start of the century.

The Bureau of Labor Statistics tracks airfares while the Department of Transportation monitors enplanements (passenger boardings). Since 2000, the US population grew 22 percent while enplanements increased by 51 percent, and the time price of airfares for blue-collar workers decreased by 49 percent. This means that in 2025, these workers get 2.04 airfares for the same amount of time it took them to earn the money to buy one airfare in 2000, indicating an abundance increase of 104 percent. Every 1 percent increase in population corresponded with a 4.73 percent increase in personal airfare abundance (104 ÷ 22).

The historical chart clearly shows the negative impact of major disruptions – the September 11th attacks, the 2008 financial crisis, and the COVID-19 pandemic policies – on flying.

You can also analyze total airfare abundance by combining airfare time price abundance with increased passenger enplanements. To visualize that, we plot airfare time price abundance on the vertical axis and enplanements on the horizontal axis, creating comparative boxes for 2000 and 2025, and then overlaying 2000 onto 2025.

Using 2000 as our baseline (setting both variables to 1.0), the initial box measures 1.0 × 1.0 = 1.0. By 2025, enplanements had grown 51 percent (to 1.51) while airfare abundance increased by 104 percent (to 2.04). The 2025 box therefore measures 1.51 × 2.04 = 3.08.

That represents a 208 percent increase in total airfare abundance over 25 years, equivalent to a compound annual growth rate of 4.6 percent. At this pace, airfare abundance doubles approximately every 16 years. Every 1 percent increase in population corresponded with a 9.45 percent increase in personal airfare abundance (208 ÷ 22).

Tip of the Hat: Maxwell Tabarrok.

Find more of Gale’s work at his Substack, Gale Winds.

Southwest | Air Transport

Southwest Airlines Launches Starlink High-Speed Wi-Fi Service

“Southwest Airlines Co. is taking inflight connectivity to new heights with Starlink. Engineered by SpaceX, Starlink will deliver next-generation WiFi across Southwest’s network of 11 countries, allowing Customers to stream, share, and scroll in the sky at lightning-fast speeds…

Southwest plans to rapidly integrate Starlink into its fleet. The first Starlink-equipped aircraft enters service this summer, and it will be available on more than 300 aircraft by the end of 2026. This is a major step in the carrier’s plan to upgrade all its aircraft with high-speed, low-Earth-orbit satellite technology.”

From Southwest.

bne IntelliNews | Air Transport

China Grants First Commercial Licences for Flying Taxis

“China has granted the world’s first commercial licences for autonomous flying taxis, marking a significant milestone in the global push for urban air mobility…

The announcement signals the start of what China has called ‘a new era in low-altitude economy’ with ambitions to lead in a sector still in experimental stages elsewhere. Chinese planners are preparing the groundwork for a business that could generate up to CNY2 trillion ($280bn) in annual output as soon as 2030, Urban Land reports.

Guangzhou-based EHang received a type certificate for its EH216-S model in October 2023, and was awarded its production certificate in April 2024. On December 28, the CAAC granted the company an operational permit, allowing it to provide passenger-carrying flights in designated airspaces…

Autoflight, headquartered in Shanghai, also confirmed it had received approval for its V400 Albatross cargo drone, with plans to expand to passenger services under its subsidiary Autoflight X.

China’s regulators have moved more swiftly than their counterparts in the US and Europe, where companies such as Joby Aviation, Lilium and Volocopter are still undergoing flight testing and certification. The US Federal Aviation Administration has indicated that commercial operations for passenger-carrying eVTOLs are unlikely before 2028.”

From bne IntelliNews.