Regulation Policy

What's Happened Under Airline Deregulation?

Over the past 20 years, consumers of airline services have been the big winners due to competition among the carriers, which has lowered airline fares, according to industry experts.

  • In 1978, only 275 million people took to the skies -- a number that more than doubled to 600 million in 1997.

  • Over those 20 years, the number of competing airlines soared from 39 to 95.

  • Adjusted for inflation, airline tickets are 37 percent cheaper today than they were before deregulation.

Airline industry defenders point out that air travel was too expensive for many Americans before deregulation. But today almost everyone flies.

Source: Carol B. Hallett (Air Transport Association), "Airfares Are a Bargain," USA Today, February 27, 1998.

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