(CNN) -this is the end of 2011, so that You know what that means. It’s time for everyone to come out of the woodwork with their predictions for 2012.
One thing that everyone wants to know is whether rates will continue to rise. We have seen many improvements in 2011, but will that continue? It really depends on two things: the passenger demand and fuel prices.
Although the economy is still shaky, the demand for the flights have been strong enough, and that has enabled airlines to continue to raise rates. If demand continues to strengthen, then You can be sure we will see more increases in the new year. If it starts to drop off, then fares will probably begin to fall, or at the very least, remain the same.
One thing that could get in the way of that plan is high fuel prices. If prices spike higher, then the airlines will be forced to raise rates in spite of the request. If that happens, then the airlines will also have to cut the number of flights.
Fewer flights, however, is likely to happen no matter what happens with the fuel.