departure points, and the travel site expects those kinds of details to continue, at least during winter, despite a rise in average airfare. The average domestic roundtrip airfare (regardless of transit points) in January 2022 is relatively low-almost record low-at just $234, while international airfare is also at historical lows at just $649 roundtrip.Īccording to Scott’s Cheap Flights, there are currently fares as low as $376 roundtrip to Paris and $486 to the Azores from U.S. We expect higher jet fuel prices to contribute to higher consumer airfare for 2022.” “Over the course of 2021, we saw a 60% increase in jet fuel prices from $1.34 per gallon at the start of the year. Energy Information Administration, is currently $2.56 per gallon-the highest it’s been since 2014. The price of jet fuel, according to the U.S. “The sharp rise in airfare also takes into account that airfares are unusually cheap right now (even accounting for seasonality) due to lower demand amidst the Omicron variant,” says Adit Damodaran, an economist at Hopper.ĭamodaran cites increased demand, seasonal effects, and higher jet fuel prices as contributing factors to higher airfares coming soon. By comparison, the consumer price index (CPI) rose 7% over the past year, reflecting the fastest annual increase in the inflation rate in 40 years. Yes, inflation is a culprit here, but there are more elements at play.Īccording to travel booking app Hopper’s Consumer Airfare Index, domestic airfare will increase 7% monthly through June, reaching 2019 levels by April 2022. That’s because, like the cost of virtually everything else right now, airfares are about to soar again.
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