Travelers received some welcome news in Wednesday's inflation report from the government: Airfares fell sharply is falling.
Average ticket prices fell 7.8% to $311 in July after falling 1.8% in June, the government said Wednesday.
Lower prices for gasoline and travel were the main reason for the modest slowdown in overall inflation in July, although consumer prices increased by 8.5%.
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But before they go on their extravagant trip to celebrate, travelers say said the average July ticket price was lower than last July. It should be noted that it was 27.7% higher than
At a time when airlines are operating fewer flights, airlines are able to increase fares because demand, at least among leisure travelers, is at or above pre-pandemic levels. I was. Airlines also noted fuel prices, which have nearly doubled since 2019.
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Fares peaked in his May, with summer vacation sales in full swing.
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Prices typically drop in late summer and early fall as vacations end and children return to school. go down. However, this year's decline is expected to be more dramatic than usual. This is partly because summer prices were so high, and partly because the cost of jet fuel has dropped by about a quarter since his late April.
Hopper, a travel data researcher, said U.S. domestic fares averaged $286 in August, dropping below $300 through October, when many people book Thanksgiving and Christmas trips. We expect it to stay and demand will start pushing prices higher.
It is unclear whether inflation and possible recession will affect people's willingness to travel.
Spirit Airlines chief commercial officer Matthew Klein said Wednesday that bookings remain strong and that the decline in fares follows a normal seasonal pattern, which is good news for the airline's earnings.
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Klein said demand will "cliff after Labor Day." I wondered if I would fall from the ground." just now. We continue to be pretty impressed with the volume that is coming out.
© 2022 The Associated Press
