Why are flights in the US so expensive?

Have you ever wondered why are flights so expensive in the United States? If you did, then I can tell you why! And if you didn’t, well… You can read this for some general knowledge. 🙂

 

The average airfare in the United States of America on 2019 is $356 according to the Bureau of Transportation Statistics, meanwhile in Europe you could find an entry flight for $24. The real question here is, why though?

 

You see, In Europe, there’s much more competition. The top four carriers only control 45% of the market! As in the United States, the top four ones control up to an 80%. Due to much more carriers in the EU operating the same route, this reduces the price drastically as the airlines have to compete with one another for passengers.

 

In the US, it is easier to find routes operated by only one airline, meaning they can price the ticket to whatever they desire as there isn’t competition as in other places. Let’s also remember that Europe has budget airlines that can get you a deal as cheap as $24! (Before inflation).

 

Between these two regions, the United States tends to have more “connecting air traffic”, meaning that you will probably have to do a layover in one of their hubs to then catch another flight to that destination. The reason why this is a thing is because there isn’t sufficient demand to operate as a single-flight.

 

Another factor of why in Europe is cheaper, it’s because of the trains. They do also compete with the aviation market when it comes to short distances. For example; 200-300 miles would be faster to travel by train than by plane.

 

Many Europeans also live in dense areas, which helps with train services, meanwhile the US population is more disperse, meaning that they can only rely on air travel. (One more reason why it is more expensive in the States).