- U.S. air fares fell 3.5% Y/Y and 5.5% M/M in August to stay in a down trend, according to data compiled by the Bureau of Transportation Services.
- Lower fuel costs and an elevated level of capacity were factors again during the month.
- Research firm Hopper expects fares to continue to drop until bottoming out at an average of $210 in January 2017.
- The lower level of fares will impact Q3 revenue per available seat mile, although those expectations are already included in guidance updates.
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