Relief is on the way for flight prices, but it won’t last for long for NC travelers
If you’ve done any traveling this summer, you’re well aware of high airfare costs.
When it comes to air travel, flight price spikes are catalyzed by inflation, jet fuel shortages, and an increase in travel demand, The Charlotte Observer reported.
The sticker shock experienced by many travelers is delivered on the heels of the pandemic when a drop in average airfare became the norm for about a year.
According to data from the Bureau of Transportation, airfare at Charlotte Douglas International Airport dropped from an average of nearly $400 a ticket in the first quarter of 2020 to around $280 in the year’s fourth quarter.
Data from the first quarter of 2022 reveal that the average airfare at Charlotte Douglas International Airport now stands at $380, 14% higher than the national average.
The Bureau of Transportation has not yet published airfare averages for the second quarter of 2022, but prices that were tracked through the US consumer price index dipped by 1.8% from May to June, Bloomberg reported.
According to a third-quarter report by Hopper, a travel booking company, airfare is expected to drop more dramatically this month. The progression would provide a much-needed break to travelers by way of a predicted 25% decrease from airfare averages at the beginning of the summer.
“Prices this summer were elevated beyond normal seasonal airfare increases by high jet fuel prices and pent up demand coming out of two depressed summer seasons, and by traveler demand peaking earlier in the summer than in a normal year,” the report states.
“Flight prices drop seasonally in late August through mid-October as demand tapers off following the peak vacation months in May, June and July. The drop this year is larger than usual as a result of the abnormally high summer prices and earlier peak in demand,” Hopper reported.
The window of time to take a breather won’t last forever, Hopper suggested in the report. According to the company’s predictions, airfare will surge back to summer-like numbers by the time the holiday season rolls around.
When it comes to long-term economic healing, CEO of United Airlines, Scott Kirby, told CNBC that travelers should expect another full year of air travel woes.
“Our base assumption is that it’s going to gradually get better and we’re not going to get back to normal utilization and normal staffing levels until next summer,” Kirby said.
Kirby explained the main drivers of prolonged travel misery are staffing shortages and an ongoing trend of airlines erasing destinations from their schedules in an attempt to ease growing delay and cancellation rates.
Last month, United slashed 50 domestic flights from its hub airport, Newark Liberty International Airport, Travel + Leisure reported. Additionally, the airline reduced flight frequency to a number of destinations.
Routes to Flagstaff, Arizona and Texarkana, Arkansas were also canceled. It is expected that a similar move will be made for routes to Los Angeles and San Diego this October.
As for why airfare is still relatively expensive amid cost-saving route cancellations, Kirby said the costs will remain in preparation for when United is ready to fully operate again.
“All the (airfare) costs are still there because we’re prepared to be a much bigger airline, we have the people to be a much bigger airline, but we’re going to be a smaller airline until the system can support it,” Kirby said.
This story was originally published August 5, 2022 at 2:20 PM.
