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Cheaper flights coming? Cost of airfare falls as overall inflation slows down

July 12, 2023
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3 min read
Woman using laptop to book flight tickets and plan holiday
Cheaper flights coming? Cost of airfare falls as overall inflation slows down
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There's relief in sight for inflation-weary Americans.

Average airfare fell 8.1% in June from the month before; it also dropped a whopping 18.9% over the same month last year, according to data released by the Department of Labor in its monthly Consumer Price Index report on Wednesday.

The decrease in fares comes amid record-breaking travel demand, suggesting the possibility that the trend of so-called "revenge travel" following coronavirus pandemic reopenings is beginning to wane.

Fares began climbing in 2021 before soaring last summer. This was partly a result of the pent-up demand from the pandemic and because Americans had more cash savings available than normal due to limits in certain types of spending during the pandemic. With staffing and equipment shortages, airlines struggled to add enough supply to meet the demand. A surge in fuel prices linked to the Russian invasion of Ukraine also contributed to higher prices.

As fares ease, the airline industry is in overall better shape, despite ongoing hurdles linked to persistent bad weather and a shortage of air traffic controllers.

As recently as late last year, airfare topped the CPI report as an inflation leader, with ticket prices climbing nearly 43% over the previous year.

Related: 6 key tools and tips to find the cheapest airfare

However, last year's price changes come with an asterisk. In 2022, there was a strong travel demand. In 2021, vaccines were still being rolled out, and many countries still imposed at least limited travel restrictions to try and slow the spread of the virus. So, drawing a comparison between the two years inherently doesn't tell the full market context.

This year, though, the report is generally more representative of true conditions, as there are similar demand trends year over year.

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The overall CPI climbed 3% for June, a major slowdown representing a significant slowing of inflation.

Even as airfare drops overall, many flights — particularly on international routes and during peak times — remain relatively pricey. Still, as was the case this spring, there are still plenty of deals to be found.

Related: When is the best time to book flights for the cheapest airfare?

Be sure to follow TPG for the latest airline deals and guides to finding the cheapest airfare, alongside tips and tricks for maximizing points and miles to lower the cost of your next vacation.

Related reading:

Featured image by OSCAR WONG/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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Apply for American Express® Gold Card
at American Express's secure site
Terms & restrictions apply. See rates & fees
Best for dining at restaurants

American Express® Gold Card

TPG Editor‘s Rating
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Rewards Rate

4XEarn 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.
4XEarn 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.
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  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.

  • Annual Fee

    $325

  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 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)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • 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.