- Thanksgiving airfares were 31pc higher in August than a year earlier.
- Bookings fell 1.6pc overall for the peak travel period.
- Newark bookings dropped 24.6pc.
- Airlines cite elevated fuel and labour costs.
- Airlines expect prices to stay high.
Thanksgiving holiday airfares have been 31pc higher in August than a year earlier, according to Cirium data. The rise has reduced bookings for the peak travel period by 1.6pc overall, with steeper drops at destinations including Newark, Seattle and Miami. Airlines cite elevated fuel and labour costs as the main drivers and expect prices to stay high.
Bookings to Newark dropped 24.6pc, Seattle 15.3pc, Miami 13.2pc, Dallas 12.6pc, Denver 11.6pc and San Francisco 11.7pc. Rising fuel costs stemming from the war in Iran increased airlines’ operating costs. Airlines hiked fares, added passenger surcharges and cut routes to offset expenses.
Airlines expect fares to remain elevated even if the Middle East conflict subsides. Fuel costs are substantially higher than they were this time last year. Jet fuel represents airlines’ second-largest expense after payroll costs, which have also risen under renegotiated labour contracts with pilots and flight attendants.
Scott Kirby shared “It’s expensive to fly aircraft. I think the tide has to rise for everyone or those airlines simply won’t exist.”
