Trends in Airfare Expenditures

George Janini is an economist in the Branch of Information and Analysis, Division of Consumer Expenditure Surveys, Bureau of Labor Statistics. GEORGE JANINI According to published reports by the Air Transport Association,1 the airline travel industry is looking to rebound from the September 11, 2001, (9/11) terrorist attacks. As reported, Americans were traveling in record numbers before 9/11 but decreased their traveling considerably after 9/11. In addition to customers’ wariness regarding flying just following 9/11, a sluggish economy in late 2001 and 2002 contributed to this decrease. This article examines trends in spending on travel in the years prior to and just after 9/11, using data from the U.S. Bureau of Labor Statistics Consumer Expenditure Interview Survey. The focus is specifically on airfare expenditures, which are compared across age groups and regions of residence. Age was selected because of the different lifestyles among the various age groups, as well as the income differences among them. Region was selected, to see if there was a larger effect in those regions that were the primary focus of the attacks.