4 ms·

Just because the cost of production of a widget falls doesn't mean the cost of the widget to the consumer also has to fall.

• rm_-rf_slash 10y ago
  As can be seen by anyone watching the price of oil drop by half while airfare remains high.
  • Scirra_Tom 10y ago
    It's complicated because as I understand it airlines hedge the price of oil far into the future. However, big business are often corrupt so wouldn't surprise me equally if there was some sort of cartel. It's strongly in their collective interests to not drop the prices.
    • deleted 10y ago
      [deleted]
  • raverbashing 10y ago
    While the price of oil is an important part, it's not the only cost factor (personal, aircraft leasing, airport fees, etc) also play a part