Why Paying Less at the Pump May Not Mean Cheaper Airfares

Rebecca Jarvis explains how airplane ticket prices relate to dropping gasoline prices.
0:50 | 01/21/15

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Transcript for Why Paying Less at the Pump May Not Mean Cheaper Airfares
You find gas now in 45 seats below two dollars a gallon so why not earth our airplane tickets dropping to. Fuel accounts for 33 to 50% of airline costs and typically when those costs go down. You end up paying middle class but that's not the case this tack why well first off. Us as long as we're willing to pay the price they're willing to charge it seconds limited competition. There's four airlines out there but account for 80% of all the flights in this country. And lastly hedging these airlines have lock in prices. Dwyane Wade more expensive than what you Breyer paying at the pop. And as a result they're paying more for fuel than any of us hence they're charging more for those tickets.

This transcript has been automatically generated and may not be 100% accurate.

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