Airfares were down sharply in July, an indication that inflation has taken its toll on flight demand.
According to Consumer Price Index (CPI) data released Wednesday by the Bureau of Labor Statistics, July airfares dropped 9.6% from June. The seasonally adjusted month-over-month drop, which accounts for the fact that airline tickets are usually slightly cheaper in July than June, was 7.8%.
Still, the average airfare in July was 27.7% above the 2021 level, reflecting a massive surge in flight demand as Covid-19 restrictions disappeared.
Adjusted for seasonality, airfares rose 18.6% from March to April and then increased another 12.6% from April to May. The tide ebbed in June, when airfares dropped a seasonally adjusted 1.8%.