Sen. Charles E. Schumer, New York Democrat, wants the Department of Justice and Department of Transportation to investigate why airline fares are so high even as gas prices are falling across the country and airlines are raking in billions in profits.
“Fuel costs make up about half of an airline’s total costs,” Mr. Schumer said Sunday during a news conference outside a Midtown travel agency, WCBS 880 reported. “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 post a collective net global profit of $19.9 billion in 2014 and $25 billion in 2015, and oil prices are down to around $60 a barrel.
“A lot of the airlines, when prices were going up, added a surcharge,” Mr. Schumer said. “Well, that fuel surcharge is still on the tickets.”
He also wants the feds to look into the impact of recent airline mergers on airfares, WCBS reported.