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PLANE TICKET PRICES DROPPED THIS YEAR

After the airline industry’s hammering due to the COVID-19 pandemic, data from the International Air Transport Association shows domestic travel was up by 26.5% in August 2022 compared to the same time a year prior.

This spring the average domestic flight cost more than $400. Now flights are on par with what they cost in previous years. Across the nation, decreases in flight costs are seen most in the Midwest and South.

Average airfare costs are based on domestic round-trip fares unless the passenger booked a one-way ticket. The average includes the ticket value in addition to taxes and fees.

Down from May high, air fares are rising at typical rates

After two years of consumers forgoing trips because of the pandemic, domestic travel saw an uptick of people traveling for Memorial Day and Labor Day holidays this year. Prices spiked this spring and have since returned to more normal ranges, even without taking into account recent inflation.

Average domestic airfare prices are down 20%

Since August, rates have risen slightly at a typical seasonal pace but are still down by more than 20% from the May high. Airport delays and cancellations varied across the country due to staff shortages as pilots reached their workday limits.

Some flight prices came down due to fewer scheduled flights, but that could change during the holiday season. For carriers such as American Airlines, revenue from summer travel was up by 13% compared to the same time period in 2019.

The May and June price spike caused a  median increase of 15% above Q4 2021 rates at major airports.

Q2 Increases Hit Passengers at Most Airports

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