Source: Fortune.com
Summary
Despite international flights using more jet fuel, domestic flight prices in the US have increased at a higher rate than international flights. According to Skiplagged, domestic flight prices have risen 23.2% since March 2025, while international flights have increased 11.5%. This is attributed to high demand for summer travel, airlines’ successful moves to protect themselves from supply-chain uncertainty, and the premiumization of the flying experience.
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The numbers tell one story.
Airlines like American Airlines have cut capacity and focused on profits, leading to higher demand for fewer flights and enabling them to keep prices higher. The premiumization of the flying experience has also encouraged travelers to upgrade, leading to higher prices. Despite the Strait of Hormuz reopening and oil prices falling, airfare is expected to remain high. Jet fuel prices are still around $2.87 per gallon, and airlines have raised prices as recently as two weeks ago.
It’s a glass half full kind of scenario, where airlines’ resilience has meant higher prices for consumers.
Author: Evan Null
