Airfare prices dropped 18.9% in the year up to June, or 8.1% between May and June, even as passenger traffic reached record levels.
Airfare prices surged last summer when Americans began planning vacations that were put on hold during the pandemic. At the same time, airlines struggled to provide seats because they had grounded planes and laid off staff while no one was flying. Additionally, jet fuel prices skyrocketed, and airlines passed the extra costs onto customers.
These factors have sharply diminished in recent months. Airlines are aggressively hiring for all positions and adding flights, bringing capacity back to pre-pandemic levels. And as energy prices have decreased, airfare prices are also falling.
But it is true that air travel this summer is still quite chaotic. Much of this is due to the weather, with many storms and extreme events causing numerous flight cancellations. Airlines also blame a shortage of air traffic controllers for delays and flight cancellations.
Source: The New York Times