Air Fares Take Off as Travel Demand Surges

Demand for air travel is rising—and so are ticket prices.

Recent data shows that air fares are increasing at more than twice the rate of inflation. Average ticket prices on more than 600 of the most popular routes globally rose 27.4 percent year-over-year in February, according to data from Cirium as reported by the Financial Times.

It was the 15th consecutive month of double-digit growth in year-over-year ticket prices and coincides with airlines signaling strong demand approaching summer, which is typically the peak season for air travel.

American Airlines posted a $10 million profit on a 37 percent revenue increase in the first quarter as flights expanded. It was the first time American posted a first quarterly profit since the start of the COVID-19 pandemic and was a nearly $2 billion improvement versus the same period in 2022.

“Demand for our product remains strong,” said American CEO Robert Isom in the airline’s quarterly earnings call.. “We continue to be very pleased with our domestic and short haul international unit revenue performance. We’ve also seen noticeable strength in long haul international demand.”