Schumer Wants Investigation into High Airfares

Senator Charles Schumer is urging the Departments of Justice and Transportation to investigate why airline tickets remain high when fuel prices have dropped about 40 percent since June.

Schumer says the International Air Transport Association reports that the airline industries are doing well, with profits expected grow 26 percent next year. Senator Schumer says fuel prices can make up almost half of airline's cost.

Financial advisor Anthony Ogorek says airlines tend to hedge their pricing.

Ogorek said, "If you've locked in prices to protect yourself from rising prices potentially, you're not going to see any benefit from the declining prices until your contract is expired. I think that's the place many airlines find themselves in right now."

Ogrorek says prices are also a reflection of supply and demand. Flights tend to be full, especially around the holidays.


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