European travel will be more expensive
International airlines have also cut capacity and therefore are charging more for their seats. According to British Airways spokesperson John Lampl, his airline has slashed seats between London and New York/Newark by a staggering 23% this year compared to last. Making matters worse, the U.K. government has increased airport fees and other taxes tacked onto fares, and these are scheduled to increase further later this year.
Lampl also points out that historically there has been a 50/50 balance between passengers departing from London vs. those departing from the U.S. on BA flights, but now that has shifted to 60% leaving from Europe. That means those shopping-bag-toting Europeans are taking the seats that we were hoping to buy on the cheap.
Another ill omen is that this past winter was the first in memory that the airlines didn't have dead-of-winter, panicky sales to Europe. Last winter, and even last summer, we saw fares as low as $250 round-trip, including taxes, to many European destinations. I'd be shocked if we saw a repeat this year. Even so, some European destinations will be cheaper than others, in part thanks to lower taxes and fees. We've already seen some scattered sales in the $500 range to Spain and Ireland. But most destinations for summer travel this year will cost well over $1,000 round-trip with tax.
http://www.usatoday.com/travel/columnist/hobica/2010-03-30-airfare-buy-now-or-wait_N.htm
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