Consumer purchasing power increases with rise in airfare

06/18/2014 | USA Today

Many goods and services increased in cost and airfare grew nearly 6% in May, according to the Bureau of Labor Statistics. "With the turmoil in the Middle East and Ukraine, oil and other energy costs may continue to rise, which will either eat into already slim airline profits or cause fares to rise further," said George Hobica, founder of Airfarewatchdog.com. An Airlines for America spokeswoman said "consumers' purchasing power is actually increasing with gains in household net worth and disposable personal income."

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