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Ouch: US airfare spikes 18%, the highest one-month jump ever

May 11, 2022
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3 min read
Christmas Travel Chaos Deepens As Airlines Scrap 800 U.S. Trips
Ouch: US airfare spikes 18%, the highest one-month jump ever
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Already expensive airfares are getting even more expensive.

New government data released Wednesday showed airfare jumped 18.6% on a seasonally adjusted basis from March to April, one of the largest categorical increases in the entire consumer price index and the largest-ever month-over-month increase for airfare. The spike from March to April follows another large jump — 10.7% — from February to March.

The "sold-out summer" is already well underway.

Airfare is skyrocketing for a few reasons, perhaps most importantly because the public is not resisting the higher fares — both at full-service network carriers such as Delta Air Lines and ultra-low-cost carriers such as Frontier Airlines. Airlines took a massive hit to their balance sheets during the COVID-19 pandemic and are taking advantage of very high demand to boost fares to shore up balance sheets and retire debt.

“We haven’t seen a lot of resistance to the price points that we have in market, and our goal is to have reasonable price points in market up to day of departure,” Delta President Glen Hauenstein said at last month's earnings call, adding that the company believes its customers are willing to pay more for a higher level of service compared with its competitors.

At Frontier, the average customer paid just shy of $70 in ancillary charges — things like bag fees and seat selection — in the first quarter, 21% more than passengers spent in the first quarter of 2019.

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Airlines are also facing high jet fuel prices due to both the war in Ukraine and more normal market fluctuations — and are passing some of those higher costs on to consumers.

Finally, capacity is becoming constrained for multiple reasons, which naturally leads to higher fares when demand stays strong. American Airlines is being forced to run a smaller summer schedule because some of the Boeing 787 Dreamliners it has on order are being held up pre-delivery by the Federal Aviation Administration for quality and safety reasons. United Airlines just suspended seven long-haul routes for June because some of its older Boeing 777s continue to be grounded — well after the airline anticipated their return. Also, an ongoing pilot shortage means that airlines are also being forced to trim the schedules of the regional airlines that operate flights for them.

More: Why are airfare and hotel rooms so expensive right now?

This would all normally create a bleak picture for airlines. But with consumers willing to go along with the higher fares — for now, at least — it's actually good business for airlines, which are now largely expecting quarterly profits for the rest of 2022 — their first real stretch of profitability since 2019.

If you're looking to book travel, prepare for some sticker shock. The best advice we have right now is to be flexible if possible, and search around for various dates and trip lengths before booking your flights.

Delta's Hauenstein agrees.

“If you’re looking for lower fares, you have to be flexible in terms of which days you’d be willing to fly,” he said.

Featured image by Bloomberg via Getty Images
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
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  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.