The Marketplace

• Perhaps more than any other industry, airlines base their ticket prices on the competition. This means, simply, that is Airline A is charging X amount of dollars for a coach class ticket, then Airline B is likely to adjust their prices accordingly. Now, is this an example of price fixing or collaboration among the airlines? No, far from it. Airlines, through a nationwide database, have up-to-the-minute access to the figures charged by their competitors. They would be foolish to risk falling behind, particularly in today's marketplace, which includes such price-seeking services as Priceline.
  
  

Gas Prices

• Another major factor when it comes to airline prices is the cost of fuel. This factor has been highlighted in recent months and years, as the price of oil soars to record levels. In turn, airlines must pay close attention to their fuel conservation programs, lest they run themselves out of business. This not only means increasing the price of tickets, but it means grounding planes and being more careful about running flights that are only partially full. All of this is bad news for the consumer, and this is reflected in the sharp decline in air travel.
  
  

Seasonal Travelling

• Finally, seasons matter when it comes to airline prices. Statistics show that there are times of the year when people are going to be traveling regardless of prices and other circumstances. These times (holidays and summer being chief among them) allow the airlines to increase their prices without worrying about a loss of business. While this may seem like a mild form of price gouging to some flyers, it is in fact the primary reason why airlines are able to keep their year-round prices at relatively low levels.