Tuesday, April 19, 2011

Rising Fuel Costs Hit Air Travel, Consumers Hammered; Los Angeles Food Trucks Feeling Economic Pinch: Who's Next?

Vin Suprynowicz discussed the role of fuel prices in his review of "Atlas Shrugged." Gas was at $37.50 a gallon, so railroads became the most economical form of transportation. At those price passenger air travel would be 100 percent prohibitive. We're not there yet, but it's happening. See LAT, "Summer airfares may climb 15% from a year earlier":
As the summer travel season approaches, airline industry experts predict that soaring fuel prices and a sharp pickup in passenger demand will push airfares up 15% over a year earlier — to levels not seen since before the economic downturn.

Fare hikes have already begun, with six of the nation's largest airlines each raising rates at least five times since Jan. 1 for nearly all routes.

By the time the peak summer travel season rolls, travel industry experts predict, domestic airfares may reach an average of nearly $390, up from a low of $302 two years ago.

"We are definitely getting higher and higher and higher fares," said Tom Parsons, who runs the popular website BestFares.com. "They've been going up once or twice a month, a nickel here and a dime there."
And at the video, L.A.'s food truck business is getting hammered?

RELATED: From Pat Austin, "Is Atlas Shrugging Where You Are?"


Bartender Cabbie said...

Real inflation is starting to be seen. Anyone who goes grocery shopping sees it.