According to a report from the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS), average domestic air fares rose 4.4 percent from the first quarter of 2007.

This increase marks the largest year-to-year increase since the second quarter of 2000; however, fare averages are still below the record 4.6 percent climb between January and March of 2001.

Average fares are based on domestic itinerary fares, round-trip or one-way for which no return is purchased, taxes and fees. Averages do not include frequent-flyer or “zero fares” or a few abnormally high reported fares.

Of the top 100 airports based on originating passengers, the highest first-quarter average fares were found in the following cities.

1. Cincinnati
2. Greenville/Spartanburg, S.C.
3. Madison, Wis.
4. Knoxville, Tenn.
5. Grand Rapids, Mich.

The lowest fares in the top 100 airports were found in:

1. Atlantic City, N.J.
2. Dallas Love, Texas
3. Burbank, Calif.
4. Ft. Lauderdale, Fla.
5. Las Vegas

See the BTS Air Fare web page for average fares for all 100 airports.

The BTS's second method of measuring fares, the BTS Air Travel Price Index (ATPI), also showed an increase in pricing, with a 6 percent rise over the last year. This growth is the highest increase recorded in the ATPI's 14-year history.

The ATPI index measures changes in airline ticket prices rather than the actual amount paid by the customer, including taxes and fees.

The BTS report said the ATPI index reflects three major trends in the airline industry.

One of the trends is the increase in passengers flying on low-cost carriers, which now carry about 40 percent of all domestic passengers. In 1995, only 14 percent of fliers used these carriers.

The second trend shows network carriers are being forced to match the low-cost carrier fare rules, therefore allowing passengers to purchase lower fares.

Finally, the Internet allows for almost instant price comparisons and increases the customer's ability to hunt for the lowest possible fare.