- US airfares rose 22.4pc year-over-year and 1.2pc month-over-month in September.
- Motor fuel prices rose 34.9pc year-over-year.
- Overall CPI inflation rose 3.7pc year-over-year.
- Airlines entered the cycle with fewer fuel hedges.
- Loss of Spirit Airlines on select routes contributed to higher yields.
Airfares in the United States rose 1.2pc sequentially in September and stand 22.4pc higher than a year earlier according to American Consumer Price Index data. The increase is linked to elevated aviation fuel prices resulting from the conflict involving Iran. The Bureau of Labor Statistics data shows airline fares rose 1.2pc month-over-month.
Motor fuel and gasoline prices rose between 9.1pc and 9.3pc month-over-month and 34.9pc year-over-year. Overall CPI inflation rose 0.6pc month-over-month and 3.7pc year-over-year. Aviation fuel costs spiked severely following the outbreak of the Iran conflict earlier this year.
Airlines entered this cycle with fewer fuel hedges in place, limiting their ability to shield ticket prices from sudden oil surges. Structural shifts within the domestic market including the loss of Spirit Airlines on select routes and a heavier structural mix of premium seating packages have driven average ticket yields higher.
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