US Airfare Jumps 30% in 5 Months as Iran Conflict and Airlines Lift Fares
Updated
Updated · One Mile at a Time · Jun 10
US Airfare Jumps 30% in 5 Months as Iran Conflict and Airlines Lift Fares
3 articles · Updated · One Mile at a Time · Jun 10
Summary
329.824 — the May airfare CPI index — marked a 30.0% rise from January and the biggest month-to-month jump in four years, extending a sharp run-up in US ticket prices.
BLS data showed fares were also up 26.7% from a year earlier, with the increase reflecting surging jet-fuel costs tied to the Iran conflict and airlines' ability to pass them through.
Airlines had already begun raising prices before the conflict intensified, helped by strong premium-cabin demand, seasonal travel and reduced low-cost competition after Spirit's liquidation.
United has signaled higher fares may persist even if oil eases, with CEO Scott Kirby saying the carrier could keep 20% of the increase next year and potentially much more if disruption lasts.