Jet Fuel Is Down, But Not Enough For A Thanksgiving Fare War

Airlines are paying less for jet fuel these days. But don't expect that price drop to translate into Thanksgiving travel bargains for you.

Rather than cut fares, airlines are turning fuel savings into cash for acquiring aircraft, upgrading software, rewarding workers and attracting long-term investors, according to John Heimlich, chief economist for Airlines For America, A4A, a trade group.

The major carriers that filed for bankruptcy during the Great Recession have learned to be more "fiscally responsible," Heimlich told reporters Thursday. After years of fighting with creditors, "they are paying their bills," he said.

In the long run, "enhanced creditworthiness" will create a more stable industry that can better serve travelers, Heimlich said.

But for now, those bill-paying efforts are sending air fares higher, with carriers pushing them up five times this year, according to Farecompare.com.

While A4A notes that fares are lower than in 2000 after adjusting for inflation, consumers might point out that today's higher fees and taxes have driven up total travel costs. In addition, in many markets, fliers have fewer choices following a merger wave that combined American Airlines with US Airways; United with Continental; Delta with Northwest; and Southwest with AirTran.