Thanksgiving flight prices have risen sharply in the US, prompting some travellers to stay home during what is typically the busiest period of the year for airlines. Average fares were 31% higher in August than during the same period last year, according to an analysis of Cirium data.
The increase has coincided with a 1.6% fall in bookings for the Thanksgiving period, the aviation analytics firm found.
Some destinations have recorded much steeper declines. Bookings to Newark fell 24.6%, while Seattle was down 15.3%, Miami dropped 13.2% and Dallas declined 12.6%. Denver and San Francisco saw falls of 11.6% and 11.7% respectively.
Higher jet fuel costs linked to the war in Iran have increased airlines’ operating expenses. Carriers have responded by raising fares, adding passenger surcharges and cutting routes.
Airlines have warned that fares could remain elevated for some time, even if the conflict in the Middle East subsides, saying fuel costs are still substantially higher than they were a year ago.
Scott Kirby, chief executive of United Airlines, told Wall Street analysts: “It’s expensive to fly airplanes. I think the tide has to rise for everyone or those airlines simply won’t exist.”
Jet fuel is the airlines’ second-largest expense after payroll, which has also increased under recently renegotiated contracts with pilots and flight attendants.
