Airfare pricing determinants in hub-to-hub markets

This paper expands upon past works in airfare pricing determinants by looking at a set of airports infrequently studied as a whole group by themselves, the hubs. The nature of hub-to-hub markets makes them unique and while they are unique in some aspects certain trends affecting all commercial air transportation markets are also seen affecting hub-to-hub markets. Pricing in hub-to-hub markets in the United States is examined and then on a carrier-by-carrier basis. Pricing in hub-to-hub markets is affected by a number of statistically significant variables including route type, presence and type of low fare carrier, and competition in hub-to-hub markets.