Air Fares Shoot Up 25 Percent From Levels During January ‘96

Airlines charged 25 percent more for business fares in January than they did in the same month a year earlier, a travel survey reported last week.

The American Express Airfare Index showed the typical one-way fare was $410 last month, about the same as in December, but 25 percent higher than January 1996.

The increase over December comes despite the expiration of the 10 percent tax on domestic airline tickets. The tax lapsed in January 1996 following the budget battle between President Clinton and the Republican-controlled Congress. The tax was briefly reinstated from Aug. 27 through Dec. 31, when it lapsed again.

The previous high for a one-way business fare in January was $385 in 1992.

In other ticket categories, the index also found that prices rose over last year.

The survey found that the average one-way price for tickets in a variety of fare categories booked through American Express was $264 one-way, down 3 percent from December, but up 14 percent from January 1996.

Full coach fares averaged $473 in January, unchanged from December but 18 percent higher than January 1996.

The index, issued monthly since 1990, monitors 215 point-to-point routes from 40 major U.S. cities.