bmwvictim wrote:
Orange wrote:
Airlines have to hedge against a large increase in oil prices by raising fares far out due to the uncertainty. As it gets closer, within 45-60 days, you will start to see truer fares. 6 months out is WAY too early too book.
This is false logic (no offense) based upon a preconception about how airlines do business. The fuel going in the airplanes in October has already been bought, in many cases, up to one year ago or more. And the airlines will buy today the fuel that is going in the airplanes next year. That's not to say that they won't add a "fuel surcharge" to the fares, but they won't generally change the base fares that much. The uncertainty is priced into the fares, whether you buy a ticket for October or Tomorrow. You still pay for that uncertainty, even if you buy a ticket for tomorrow, to spread that cost among all of the airline's customers.
Many of the best deals in airline travel are bought one year in advance, and many more are bought 6 months in advance. It's never too early to book. Also, it's never too late to wait for a good fare. It's a contradiction, in which you are betting, just as if you were in Las Vegas, that a better "fare" will appear. The airlines take advantage of this misunderstanding to prevent people from knowing when the best fares are available, even though they telegraph that knowledge to you every day. The airlines don't want you to know when the best fare is available, so that you can't play their fare-manipulation game. The only exceptions are the so-called "fare sales", which is usually (but not always) a panic sale by the airlines to get "T" fares sold to fill up empty airplanes. Empty airplanes still have to fly.
I just did a quick search for a round-trip from IAH to SJO for May, June, July, August, September, and October. Except for July, the available fares are all between $613 and $650. July spiked up to $730, and sure enough, those fares are not sLUT fares. If you're traveling in July, it would pay to wait at least one more month to book. For the other months, the chances of beating the current fares are 50% or less.
I know you think you know what you are talking about, but what you wrote is mostly wrong.
In 2014, not many airlines are hedging fuel because it seems like futures are pricy. The biggest airline, American (US Air), are not hedging at all, per company policy. Others only have a minority percentage of 2014 fuel hedged. So your statement about airlines already having bought fuel for the year is about 95% false.
Unless an airline has some super promo fare way in advance, you usually get raped by booking 6 months out. All travel consultants that I have seen or heard in the past few years have said to buy no more than 60 days out, and most say closer to 30.
Nobody, not even airline staff, knows how the system actually prices the seats one minute to the next. Obviously, supply and demand (and expected demand) factor in but there are lots of others factors (competition, number of airlines serving destination from said airport, time of year, etc etc.)