US airfares set record high fares last year

The bad news: average domestic airfares of $364 last year set a record.  The good news: adjusted for inflation, they were significantly below the 2000 peak.

The airlines predictably blame last year’s 28% jump in fuel costs.

That $364 figure was an 8.3% increase over 2010, said a report by the Bureau of Transportation Statistics. The previous record high was $346 in 2008.

Higher prices should continue and the US’s largest airline shave already approved three far hikes this year.

"I can’t remember paying this much," said George Hobica, founder of Airfarewatchdog, told the LA Times. "I think we will see incremental increases until passengers scream ‘No more!’"

Industry representatives also say that because of higher fuel costs and other expenses, the nation’s airlines reported a profit margin of only 0.3% last year.

By David Wilkening