Air fares remain high as travel demand shows few signs of cracking | Tech US News


Jet plane landing at sunset.

RobertSilberblatt/iStock via Getty Images

Air fares in the US USA were up 42.9% in October compared to an unadjusted year ago, a clear indication that travel demand remains strong.

In a month-over-month comparison, airfares fell 1.1% in October after rising 0.8% in September, according to data compiled by the Transport Statistics Office. October is usually a weaker month for fares with the summer travel season over.

Overall, analysts expect rates to remain elevated with labor and fuel costs still high in the industry. Strong corporate travel trends are also supporting fares to help offset any slippage in leisure travel with consumer discretionary spending under pressure. Looking ahead, there have been some reports that leisure holiday bookings are slightly weaker than expected, but also corporate bookings for January 2023 are well above the 2022 level.

The upcoming JetBlue-Spirit merger is also being watched in the context of fares. The deal will create the fifth largest airline in the United States. Analysts think the combination could lead to higher fares on certain routes if competition is reduced.

See Delta Air Lines (NYSE: DAL), Spirit Airlines (SAVE), Southwest Airlines (LUV), United Airlines (UAL), Alaska Air Group (ALK), Hawaiian Holdings (HA), American Airlines (AAL), JetBlue (JBLU), Allegiant Travel (ALGT), Mesa Airlines ( MESA ), SkyWest ( SKYW ), Sun Country Airlines ( SNCY ), and Frontier Group ( ULCC ).

Read more about the October inflation report.


Source link

Please disable your adblocker or whitelist this site!