Oil prices fall, but that may not mean lower air fares - Hawaii News Now - KGMB and KHNL

Oil prices fall, but that may not mean lower air fares

HONOLULU (AP) - The price of oil has fallen sharply but so far airline fares have not dropped, and they may not.

The Honolulu Star-Advertiser reports strong demand and limited seats have made it possible for airlines to keep fares high even as the price of jet fuel tumbles.

Industry experts say it's incorrect to assume that pricing is based on an airline's costs.

New York airline consultant Bob Mann says that if an airline is filling its seats at current ticket prices, there's little incentive for the company to lower its prices.

Hawaiian Airlines President and CEO Mark Dunkerley says prices are a function of marketplace dynamics.

He says if supply and demand stay at roughly the same equilibrium, ticket prices will stay about where they are.

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