Tags: Chuck Schumer | Airline Fares | fuel | prices

Schumer Calls for Federal Investigation into Airline Fares

By    |   Monday, 15 Dec 2014 11:37 AM

New York Democratic Sen. Chuck Schumer is calling for a federal investigation into why airline fares are not dropping despite significant declines in the price of fuel.

According to CBS News, Schumer highlighted "record" airline profits and said the high costs of flying are particularly apparent to passengers during the holiday season. He has called for the Department of Justice and the Department of Transportation to launch an investigation.

"Fuel costs make up about half of an airline's total costs," Schumer said Sunday during a news conference, according to CBS News.

"And so with dramatically lower fuel prices and a major rise in profits, it's safe to say that the airlines can afford to pass at least some of these savings onto the consumer."

The International Air Transport Association reported recently that airlines are expected to have reached a collective net global profit of $19.9 billion in 2014 and $25 billion in 2015, CBS News said the senator's office highlighted.

At the same time, oil prices have decreased by 40 percent since June and stand at around $60 per barrel.

"A lot of airlines, when prices were going up, added a surcharge," Schumer said, according to CBS News. "Well, that fuel surcharge is still on the tickets."

He said he wants the federal probe to consider whether recent mergers in the airline industry may have contributed to a less competitive environment and hence higher airfares, CBS News reported.

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New York Democratic Sen. Chuck Schumer is calling for a federal investigation into why airline fares are not dropping despite significant declines in the price of fuel.
Chuck Schumer, Airline Fares, fuel, prices
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2014-37-15
Monday, 15 Dec 2014 11:37 AM
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