Why is it expensive to fly into Atlanta?
Why is it so expensive to Fly into Atlanta?
Atlanta is among the top global airports, and it operates with passenger traffic exceeding 100 million per year. Atlanta is a major airport for Delta Air Lines and a secondary focus city for other airlines, including Southwest; thus, finding affordable flights into Atlanta is more challenging than at other airports in the United States. Below are some of the main reasons why people are charged more for their airline tickets to Atlanta.
Atlanta is a major hub and passageway Atlanta is a major transportation system, whereby passengers from the small cities in the Southeast and Midwest use Atlanta as a central connection point for the various flight services. This enables the airlines to reap optimal revenues from the traffic congestion point in Atlanta. However, it also eliminates completion on several routes so that many airlines are free to charge higher fares on their flights that come into and out of Atlanta. The increased number of flights also implies that airports such as Hartsfield-Jackson charge high landing fees and gate rental, which is recovered through high fares on plane tickets.
Business Travelers are an important segment that is always in need of hotels. Many of the passengers that fly in and out of Atlanta are businessmen, so they are less concerned with the prices of the tickets. Some of the large firms in the region include the Coca-Cola Company, Home Depot and United Parcel Service Company, all based in metro Atlanta. It also has very active conventions and trade shows. It is a well-known fact that such passengers using business travel fares are willing to pay a high fare, especially if they are on a refundable last-minute ticket. This goes straight to the leisure flyer’s pocket.
Due to the absence of Low-Cost Carrier competitors that could effectively
Atlanta is on the list of US cities destinations that are covered by some low-cost airlines, for instance Southwest, Spirit, and Frontier, but the coverage is relatively small compared to other airports in the same country. This means that dominance by the big legacy airlines, such as Delta, has the effect of reducing the availability and coverage of low-cost air travel and, subsequently, the competitive pressures on ticket prices. Still, the airline has been gradually adding more routes in Atlanta, which can ease the situation of escalating flight costs. However, the availability of low-cost carriers operating in Atlanta is still very restricted.
Sprawling Layout Increases Costs Primarily because of the four runways and a whopping 197 gates
Hartsfield-Jackson Atlanta International Airport occupies sizeable land. It takes a long time to taxi on the ground at Atlanta, hence using more fuel, which increases the Airline’s operating costs compared in other small airports. These costs contribute to increased fares and transportation costs among consumers. And since Delta has virtually a hegemonic hold on air transport services in Atlanta, they can pass these higher airport costs to consumers.
Pandemic Cuts Increased Prices In the middle of the COVID-19 pandemic, airlines decided to reduce the supply of services to Atlanta because of the drastic decrease in the demand for travel. Many international flights were cancelled and Course F was closed Delta Air Lines had many international flights and decreased the number of available seats, which lowered supply. However, the destructive impact of the COVID-19 pandemic has forced airlines to steadily remove the capability to add capacity as travel resumes in recent months. However, it does not take a short time to reinitiate and recall employees who are assigned to the airplanes. This unhealthy supply-demand relationship has led to hikes in airfare prices not only for Atlanta but for other airports within the United States in the past year.
High fees It is also important to know that flying to Atlanta is relatively more expensive than many other domestic airports, with costs going beyond the base ticket price. Some of the common fees that further crank up the costs include checked baggage fees, seat selection fees, food and beverages taken on board, and ticket modification fees, among others. As a general rule, savings-oriented flyers need to Factor these into the equation when calculating the cut rate. This is also another way through which airlines can sell flights at very cheap prices, only to cover all the charges through add-on charges.
Fare Hike Ripple Effects This is because when Delta hikes Atlanta fares, other carriers do the same to counter their decision. Along the same lines, when fuel costs are increased and airlines include fuel charges in their Delta Airlines Flight, Atlanta usually incurs more than usual charges because of its relatively higher overall ticket prices. As a hub airport, any decisions made by Delta, for instance, a change in their pricing strategy, affects a significant number of flights in Atlanta. Higher costs then spread out to other routes served by Delta’s network partners and competitors based in Atlanta.
The Hanover Effect The so-called “Hanover Effect”
citing a New Jersey town used by British Airways as a mechanism to set higher price indications for trans-Atlantic flights has been cited by some analysts as a reason for Atlanta airfares to be relatively higher as compared to other competing cities. Even though it may not solely dictate national air pricing, Delta’s influence over Atlanta sets benchmarks for future rate increases that can ripple through their entire route map. Other airlines may also increase the price of their fare to make extra profit by matching the fares of the competitive routes in Atlanta.
That is why Atlanta remains one of the most expensive major airports to complete a flight across the United States. Delta’s home base, Atlanta, saw a perfect storm of factors that should make it expensive: booming travel demand, plenty of infrastructure to support it, and pandemic recovery. For travelers with a shoestring budget, it is all about timing—when to look for low-season rates or take connecting flights with budget airline gateways. However, in most instances, the fact that there are no stops experienced by those flying non-stop makes it easier for individuals who frequently travel for business purposes to consider the fares offered in Atlanta to be worth it.