Amid rising inflation, airfares dropped nearly 10% in July

|
There was huge pent-up demand for air travel early this year, but that has eased.
There was huge pent-up demand for air travel early this year, but that has eased. Photo Credit: Hidesy/Shutterstock

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%.

Comments

From Our Partners


From Our Partners

Journey through Arabia
Journey through Arabia
Register Now
A Travel Industry Icon: Gloria Bohan of Omega World Travel Celebrates 50 Years of Success
A Travel Industry Icon: Gloria Bohan of Omega World Travel Celebrates 50 Years of Success
Read More
Inside the mind of today’s leisure traveler. Go bigger. Go farther. Hyper-personalize.
Inside the mind of today’s leisure traveler. Go bigger. Go farther. Hyper-personalize.
Register Now

JDS Travel News JDS Viewpoints JDS Africa/MI