Latest Hopper Survey Reveals a 40% Increase in Domestic Airfare Prices

Two people calculating the increase of airfare prices

Are you thinking of going on a trip anytime soon? Well, you’d better act now: Online booking website Hopper revealed in their latest airfare index report that domestic airfare prices will continue to rise in the coming months. 

Since the start of the year, experts revealed an increase of 40% in domestic airfare prices alone. 

As per Scott Keyes, founder of Scott’s Cheap Flights: “In the U.S. the average prices for domestic airfare tickets increased by 5.2% last month, the biggest jump since 1999.”

What’s caused the recent surge in airfare prices?

1. Increase in demand

graph showing increase in demand of airfare prices

Despite reports of the increase in domestic airfare prices, demand is still higher than ever before. 

“I’ve never seen a stronger demand in my career,” said Delta Chief Executive Ed Bastian.

Leading airlines such as Delta, United, and Southwest have all said that they will continue to increase airfare prices in the coming months as they try to compensate for the hike in jet fuel costs. 

Delta has gone on to say that it will increase its prices by 10% this month. 

So, why has demand increased despite the continuing jumps in ticket prices? 

Simply put, people miss exploring other locations. Moreover, since there’s been a rise in the number of remote workers and digital nomad visas issued around the world, people can now work while they travel.  

“A tremendous increase of demand is from travelers who have not been able to travel the last two spring and summer seasons,” said Haley Berg, an economist at Hopper, in a recent interview with ABC News. 

2. Jet fuel prices

Here’s another excerpt from Haley Berg’s interview with ABC News explaining the increase in jet fuel prices.

“Jet fuel prices are up 40% since the beginning of the year,” said Berg. “Prices have also increased by 75% since this time last year. When you combine a high demand and a significant increase in jet fuel prices, overall domestic airfare is bound to go up."

However, the increase in fuel prices comes as no surprise to most American travelers, especially since President Biden recently announced that he’s placing a ban on Russian oil, natural gas, and coal imports.  

3. Uncertainty over travel restrictions

uncertainty of travel restrictions

This cause is more down to the travelers. The uncertainty of travel restrictions has played a crucial role in willingness to purchase tickets. 

Consequently, travelers have become more hesitant to book tickets in advance because of the likelihood that restrictions may change in the coming months. And, as you may well know, airlines tend to hike prices the closer they are to the travel date. 

For domestic flights, travelers are now booking tickets 41 days closer to their intended date; a nine-day decrease from March 2019 when travelers purchased tickets 50 days in advance.  

The same also goes for international flights. Travelers are now booking tickets 65 days before their desired date; a 14-day decrease compared to March 2019.

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