Airline ticket prices plunged in July after peaking in recent months, fueled by high costs, high demand and limited flights.
Fares were down 7.8% in July compared to June, helping to ease overall inflation. Aviation experts said they expect prices to continue to fall through the fall as jet fuel prices and demand ease.
Fares peaked in May when many travelers began to review their summer travel plans. After more than two years of attention, many people have taken long trips this summer, which is usually the busiest season for air travel. At the same time, many airlines are reducing the number of flights on their summer schedules to reduce the risk of mass delays and cancellations due to weather and manpower issues, especially during holidays and other travel peak days. Rising labor and fuel costs also pushed up fares.
Last month’s fall in fares coincided with a fall in U.S. jet fuel prices, which fell about 25% at the end of last month from a peak at the end of April, according to the Energy Information Administration.
Travel booking and price-tracking app Hopper says airline ticket prices typically drop from late August to mid-autumn as summer travel eases. Hopper said fares averaged $286 this month, and he expects them to be as much as 25% cheaper from May. Hopper said fares were below $300 through September, and in November he peaked at $373, a 24% increase he expects from the same month in 2019.
Despite broader economic concerns, airline executives say bookings have not fallen significantly beyond normal seasonal trends in recent weeks.
