If you’ve been looking for cheap flights recently, you’ve probably been surprised by the prices you find. Despite your best efforts to be flexible about travel dates and airports at the destination, you can’t seem to find the amazing offer you’ve become accustomed to seeing.
So, why are airline tickets so expensive right now? In the end, it’s not that difficult. There are numerous factors that influence airline tickets, and in my never-ending quest to locate tickets that are not expensive, I have learned a lot about them.
Here are the reasons why airline tickets are so expensive right now, as well as how long you have to wait before they start to fall again and how to locate cheaper alternatives in the interim. I’ll also explain how I utilize various tactics and tools to find cheap flights.
Why Are Airline Tickets Currently So Expensive?
The sky-high airline rates in 2023 are, in many ways, the result of a perfect storm of events, including present economic conditions, that have all coalesced this year to put upward pricing pressure on airfares. These are the four key reasons why airline tickets are currently so expensive.
#1. Inflation
Of course, travel isn’t the only rising price. In 2023, inflation will drive up the cost of most essentials. “This is putting pressure on the airlines’ costs,” Berg adds. “It’s affecting everything from pilot salaries to the price of the snacks they hand out on the flights,” she adds.
Overall, airfares are rising faster than the rate of inflation. According to the U.S. Bureau of Labor Statistics, which measures airfares and other costs, “[Flight] ticket prices are significantly outpacing the rate of inflation.” According to the organization, the average airfare in the United States increased by 28.5 percent in 2022 over the previous year, while the Consumer Price Index, the most commonly used measure of inflation, increased by 6.5 percent during the same period.
#2. The cost of oil
Jet fuel, which is normally the second-highest expense for airlines after labor, has also risen dramatically since the beginning of the epidemic, owing in part to the conflict in Ukraine; oil that was expected to cost around $65 per barrel in 2021 has risen to well over $100 per barrel in the past year.
#3. There aren’t enough planes.
One barrier is that new airplanes aren’t being produced as quickly as predicted. According to Gary Leff, proprietor of the road warrior website View from the Wing, airlines scrapped older planes during the epidemic, anticipating replacing them with more fuel-efficient models on order. However, due to persistent supply chain issues, both Boeing and Airbus have experienced delays in manufacturing and delivering aircraft.
#4. There are still not enough pilots (or other airline personnel).
Another factor is that airlines are still rebuilding their route networks, and while many markets are nearing 2019 capacity, they may not have adequate personnel to handle more capacity. “Airfares are, fundamentally, a function of supply and demand,” Leff adds. “Travel has recovered and outpaced airlines’ ability to scale back up.”
Indeed, airlines are grappling with a continuing employment shortage, despite the fact that, as Leff points out, U.S. carriers received up to $10 billion in subsidies for the explicit aim of retaining employees on board after the pandemic halted air travel in 2020. “They used that money to pay people to retire earlier, so the separations were voluntary and thus legal under bailout terms.” Airlines have recently increased their staff recruitment efforts and even established novel pilot training programs to fill much-needed pilot vacancies, but it is a lengthy process that will take time to bear fruit.
What Is the Relationship Between the Weather and Airfare Prices?
It’s about the seasons, not the weather, and where travelers want to go to enjoy them. The more travelers who want to visit a given place or region, the higher airfare prices can rise.
Consider the following: Is a vacation to Canada or Alaska in January on your list of ways to escape the winter cold? Most likely not. In the winter, there is less demand for colder destinations across the board, which typically results in reduced pricing.
The opposite is true for warm-weather destinations: Prices rise when there is significant demand. In the winter and spring, airlines frequently boost flights to popular warm-weather destinations… However, they are not always able to keep up. As a result, we’ve noticed a significant increase in airline prices to places such as Miami (MIA) and Fort Lauderdale (FLL) in recent months.
Read Also: HOW TO BOOK A FLIGHT: Detailed Step-By-Step Guide
Will There Be a Reduction in Flight Prices for Christmas and Other Holidays?
Don’t bank on it.
Travel demand is just not higher than during the Christmas and winter holidays. Airlines understand that Americans are eager to travel somewhere for the holidays… and are willing to pay for it. That’s a recipe for expensive airline tickets, and 2023 will be no exception.
That being stated, you should not book your flights for December or January right now. Google Flights studied the figures and discovered that domestic flights over Christmas often drop to their lowest prices approximately 88 days in advance… and disappear 20 days in advance. That implies you’ll want to book far in advance of early December.
Even if you aren’t ready to book yet, create a Google Flights Price Alert for your Christmastime travel plans so you may be notified when costs drop or rise. This could provide you with crucial information about when to schedule flights.
Will the Increase in Flight Fares Compensate for Losses Caused by the COVID-19 Pandemic?
Both yes and no.
During the worst of the pandemic, airlines lost billions of dollars. For the previous few years, most of them have been consistently putting out excellent earnings. Delta Air Lines, for example, made a $1.3 billion profit in 2022.
However, it is not as simple as airlines charging higher fares to make up for the money they lost in recent years. It’s a delicate mix of record-breaking travel demand outstripping airlines’ ability to carry everyone – an imbalance in the basic “supply and demand” curve that plays the single most important role in pricing. Meanwhile, gasoline and labor expenses are rising.
So, while airlines are charging more and returning to profitability, this is no different than how things were in 2019 and before.
What Is Gasoline Duty, and Will It Be Raised?
Airlines despise having to pay more for gasoline. However, when fuel prices rise, they are not on the hook. You certainly are.
Whether you call it fuel duty or fuel surcharges, it’s a significant element of what you’re paying for when you book a flight or redeem your frequent flyer miles. In addition to the real airfare and a slew of government taxes, many airlines levy additional surcharges, which are factored into the final amount you see at the checkout. These fees rise in tandem with petrol costs.
Unless you enter your route into a tool like ITA Matrix, you may never see these “carrier-imposed surcharges” – sometimes referred to as YQ or YR charges.
When you buy a flight with cash, the fuel charges are simply added to the final price. However, many airlines charge these additional costs even when redeeming points for a (supposedly) free flight.
That’s why, after numerous increases, taxes, and fees on Emirates first-class flights have risen to nearly $1,000.
What Is Behind the Rise in Jet Fuel Prices?
While airlines are unlikely to fill up their planes at your neighborhood gas station, you may reasonably assume that if you’re paying more at the pump, so are airplanes.
Will Airfares Fall in the Second Half of 2023?
We don’t have a crystal ball, but we believe it.
Travel demand is still recovering from the pandemic’s depths, but it cannot continue indefinitely. It will take time, but airlines should be able to satisfy demand steadily as they hire and train more pilots and introduce more new planes into the skies.
We expect average travel rates will continue to fluctuate over the next few months, so don’t be shocked to read the occasional news stating that flight prices have increased – or decreased.
If there’s one thing we can guarantee, it’s that cheap airline discounts aren’t going away. The big question is how easy they are to find.
Saving Money on Airline Tickets
These are just six of the major elements that can influence flight prices. While some of them are unavoidable as a traveler, there are some strategies and tactics to acquire the best pricing, even when airline tickets appear to be sky-high.
#1. Find Cheap Flights Using Tools Like Skyscanner and Going.com
To begin, there is strength in numbers, and you will need to search as broadly as possible to discover that cheap flight you require. Rather than browsing airline websites, sets of dates, and each location one by one, use a program like Skyscanner to make your life easier.
We’ve written extensively about Skyscanner and how it gathers all of the flight details stated above and combines them into a single search to find you the best price. Using this simple website can save you hours in some circumstances.
Sign up for Going.com (Formerly Scott’s Cheap Flights) to receive alerts whenever there are amazing deals exiting your city to save even more time.
#2. Take a look at the Basic Economy Fares.
While they are widely despised, basic economy prices can be a good option for the right passenger. If you don’t mind sitting in the middle for a few hours, don’t need a suitcase, and don’t mind packing your own snacks, you can save a lot of money on these tickets.
#3. Compare Budget Airlines vs. Major Airlines Carefully
Having said that, if seat selection and ticket flexibility are crucial to you, thoroughly consider your options.
A low-cost airline that charges for everything else may end up costing the same or even more than a full-service carrier. By taking that flight, you’ll have a more comfortable trip and earn frequent flier miles.
#4. Make Use of a Good Credit Card Strategy
Finally, don’t forget about my all-time favorite travel tip. Credit cards should be used strategically and prudently! Many airlines provide a co-branded credit card that entitles you to benefits such as free luggage, complimentary seats, or even status. It’s the same rationale as applying for a credit card with a certain hotel brand.
If you don’t have one of these cards and aren’t looking to start a new account, you can still make a wise decision. Most travelers have a credit card that offers travel benefits such as lost luggage protection or rental car insurance.
Some credit cards provide cashback on specific purchases. Understand your cards and what they have to give. This can either directly or indirectly save you money and make your trip a lot more enjoyable.
You may combine them with cashback shopping platforms like Capital One Shopping or Honey to gain extra incentives that transfer straight into savings. Both are browser plugins, so earning some money back on an expensive flight is as easy as it gets.
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- WHAT DAY ARE FLIGHTS CHEAPEST TO BOOK? All You Need To Know.
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