Roberta Aguirre
Philadelphia Airport is one of the most expensive airports in the United States for departures. In 2019, it was ranked the eighth most expensive airport to fly out of in the country. In 2023, data from the Bureau of Transportation Statistics showed that Philadelphia International Airport had the fifth largest percentage spike in ticket costs. This has been a growing concern for students, who find it challenging to visit their families during holidays due to the high costs. The expensive nature of the airport has been attributed to various factors, including its status as a US Airways fortress hub, with US Airways being a predominant carrier.
| Characteristics | Values |
|---|---|
| Philadelphia Airport's ranking in the US | 8th most expensive |
| Percentage spike in airfare | 5th largest |
| Ticket price range | $400 to $600 |
| Ticket price to Charleston | $680 |
| Ticket price to Charleston from DC | $332 |
| Ticket price to DC | $200 |
| Ticket price to San Francisco | $500 |
| Ticket price to Buffalo | $120 |
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What You'll Learn
Philadelphia is a US Airways fortress hub
Philadelphia International Airport (PHL) has been ranked as one of the most expensive airports to fly out of in the United States. In 2019, it was ranked the eighth most expensive airport in the country. Data from the Bureau of Transportation Statistics shows that the cost of flights out of Philadelphia increased at the fifth-highest rate of any airport in the country over the past year. This has had a significant impact on students, who often cannot afford to travel home during breaks.
One of the reasons for the high cost of flying from Philadelphia is that it is a US Airways "fortress hub". US Airways is a predominant carrier at the airport, and while other airlines like Southwest now serve Philadelphia, the high prices remain. In comparison to other major East Coast cities, such as New York, Newark, and Washington, D.C., flying out of Philadelphia can often be much more expensive.
The high prices at Philadelphia International Airport have been described as a “legitimate scandal" by some. For example, a round trip from Philadelphia to Charleston in October can cost $680 on American Airlines, while the same flight from Washington, D.C. is $332. Additionally, a one-hour flight from Philadelphia can cost up to $500 round trip, which is more than a flight to San Francisco.
The issue of high airfare prices is not unique to Philadelphia, as the cost of flying domestically has increased across the United States. According to the Indianapolis Star, the average price of a plane ticket increased by 16% in 2023 compared to the previous year. However, Philadelphia stands out as having some of the highest airfare prices in the country, and this has been a consistent issue for several years.
Despite the high costs, some travellers choose to fly out of Philadelphia for the convenience it offers. Additionally, there are occasionally deals to be found, with some round-trip flights within the United States costing less than $200. However, these deals often come with catches, such as having to book with a less desirable airline or having long layovers.
Overall, the high cost of flying from Philadelphia International Airport is a significant issue for many travellers, especially students. The airport's status as a US Airways fortress hub is a major contributing factor to the high airfare prices, and it is an issue that does not seem to be going away anytime soon.
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American Airlines' monopoly
Philadelphia International Airport (PHL) has seen a significant increase in flight prices, with data showing that it experienced the fifth-largest percentage spike in ticket costs across US airports. This has made it the eighth most expensive airport to fly out of in the country.
Several factors have contributed to the high airfare at PHL, and one of the main reasons is the dominance of major airlines in the market. American Airlines, one of the "big four" US airlines, has a strong presence at PHL and controls a significant share of the market.
American Airlines, along with Delta, United, and Southwest, control about 80% of total domestic passenger traffic in the US. As of 2015, a single airline controlled the majority of the market at 40 of the 100 largest US airports, and this number has likely increased since. This consolidation in the industry has led to a degree of monopoly power, allowing airlines to raise prices without significant competition.
At PHL, American Airlines has taken advantage of its position as the dominant carrier to set higher prices. This is evident in the comparison of flight prices between Philadelphia and other cities. For example, a round-trip flight from Philadelphia to Charleston in October was priced at $680 on American Airlines, while the same flight out of DC was $332.
The high costs of flying from PHL are not limited to a single route but are rather a widespread trend. This has impacted not only leisure travellers but also students, who are often unable to afford the high prices to fly home during breaks.
The airline industry's consolidation has resulted in reduced competition and increased prices. This has led to a situation where local communities are dominated by a single carrier or a cartel of common owners, with little choice but to accept the high prices and reduced service quality.
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Smaller airports have better deals
While Philadelphia Airport (PHL) is the eighth most expensive airport to fly out of in the US, smaller airports don't always offer better deals. In fact, smaller regional airports tend to be more expensive due to high surcharges and landing fees, and less competition between airlines. However, there are some exceptions, and smaller airports near larger metropolitan areas tend to offer good prices.
For example, a flight from Philadelphia to Charleston in October costs $680, whereas the same flight from DC is $332. However, a direct flight on Frontier from Philadelphia to Charleston can be as cheap as $38 if booked in advance. Similarly, a round trip from Philadelphia to Buffalo can cost up to $500, whereas a round trip from Philadelphia to San Francisco is only slightly more expensive at $500, with an Irish coffee included.
Smaller airports tend to attract low-cost carriers, which have lower fares, but they also have more limited destinations and fewer daily flights. For example, Long Beach, Burbank, and Milwaukee are smaller airports that are among the cheapest in the US. Additionally, smaller airports may have fewer deals, but when they do occur, they are worth taking advantage of. For example, when airlines add a new destination, they often advertise these routes with discounted promotional prices, which go quickly.
To find the best deals, it's important to stay flexible with your travel destination and dates. Rather than deciding on a destination first, look for deals within your price range and choose the best option. Peak seasons, such as summer and winter holidays, are the most expensive times to travel, so consider travelling during the shoulder or off-season for lower prices. Additionally, if you fly out of a small airport and use the same airline, consider signing up for an airline co-branded credit card to earn points or miles and bring down the cost of flights.
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Competition and other factors
One factor that contributes to the high cost of flying from Philadelphia is the competition, or lack thereof. Philadelphia is a US Airways "fortress hub," meaning that US Airways is a predominant carrier at the airport. While the presence of Southwest Airlines has helped increase competition and improve pricing to some extent, Philadelphia's smaller size and lower number of airlines serving the airport result in reduced competition compared to larger airports like New York's LaGuardia and JFK, which are served by almost every US-based airline.
Additionally, the availability of alternative airports within a reasonable distance can impact pricing. For example, travellers heading to or from Philadelphia may opt for nearby airports like Newark, New York, or Washington, D.C., which offer more competitive pricing. This competition from neighbouring airports can influence the pricing strategies of airlines operating at Philadelphia International Airport.
Another factor is the convenience and demand for flights departing from Philadelphia. Despite the higher prices, some travellers may still choose to fly from Philadelphia due to its proximity or personal preference, especially if they are willing to pay a premium for convenience. This demand can allow airlines to maintain higher prices without significantly impacting passenger numbers.
Furthermore, the cost of operating at Philadelphia International Airport may be a factor in ticket pricing. Airports with higher operating costs, such as those associated with newer or larger terminals, may pass on some of these costs to airlines in the form of higher fees. Airlines, in turn, may reflect these increased costs in their ticket prices.
Lastly, the specific route and timing of travel can also influence pricing. Certain routes may be more expensive due to higher demand or limited flight options, and booking in advance or during peak travel seasons can also affect the cost of airfare.
While competition is a significant factor, it is important to consider the interplay of these various factors when understanding the pricing dynamics at Philadelphia International Airport.
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Ticket prices increased by 16% in 2023
Philadelphia International Airport (PHL) has long been considered an expensive airport to fly out of. In 2019, it was ranked the eighth most expensive airport to fly out of in the United States. Fast forward to 2023, data from the Bureau of Transportation Statistics shows that Philadelphia International Airport delivered the fifth-largest percentage spike in ticket prices across all airports in the country. Ticket prices increased by 16% in 2023, from an average of $328 in the first quarter of 2022 to roughly $382.
This increase in ticket prices out of Philadelphia has had a significant impact on travellers, especially students. For example, a student travelling from Philadelphia to Portland, ME, for a break would have to pay between $400 to $600 for a round trip. This is significantly more expensive compared to flying from other major East Coast cities such as New York, Newark, and Washington, D.C.
The high cost of flying from Philadelphia is influenced by several factors. One factor is that Philadelphia is a US Airways "fortress hub," meaning that US Airways is a predominant carrier at the airport. While Southwest now serves Philadelphia, offering some competitive deals, Philadelphia still has fewer airlines serving the airport when compared to other major airports.
Another factor contributing to the high ticket prices is the convenience and demand for non-stop flights. For example, a non-stop flight from Philadelphia to Charleston can cost upwards of $500, while a flight with a stopover can be as low as $190.
The increase in ticket prices out of Philadelphia International Airport in 2023 has made flying from the airport even more expensive, impacting travellers' budgets and decisions about when and where to travel.
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Frequently asked questions
Philadelphia Airport is a US Airways "fortress hub", meaning that US Airways is the predominant carrier. This contributes to higher prices as there is less competition.
Yes, according to a report by the Bureau of Transportation Statistics, the cost of flights out of Philadelphia increased at the fifth-highest rate of any airport in the country over the past year.
Philadelphia Airport was ranked the eighth most expensive airport to fly out of in the United States, according to The Points Guy, a travel news site. It is also worth noting that the Wall Street Journal ranked Philadelphia Airport as one of the worst airports in the U.S. in terms of overall expense.
