Even with oil prices down, it seems like airline tickets are either increasing in price or staying level. In fact in October 2014, there were four separate attempts by U.S. airlines to hike airfares with mixed success. But why?

Questions:
1. To what conditions does Seany attribute the high airline ticket prices?
2. Do you think there are any important issues that Seany missed? Discuss.
3. What industries are affected by oil futures and hedges? Explain how they work.
4. What type of cost is oil to the airline industry? Explain.

Source:
Seany, R. (2014). Airfare explainer: Why ticket prices continue to rise as oil prices drop. Fox News, December 3 (Retrievable online at http://www.foxnews.com/travel/2014/12/03/airfare-explainer-why-ticket-prices-continue-to-rise-as-oil-prices-drop/)

ABC News Video. (2015) Explain, Please video. ABC News, January 21 (Retrievable online at https://www.youtube.com/watch?v=9hkz4JFpW48)