U.S. Airfares Have Highest One-Month Increase in History

From the Financial Times this morning:

Airfares rose by 18.6 per cent in April from the previous month, the largest one-month increase in the history of the Consumer Price Index, according to the US Bureau of Labor Statistics. 

On a yearly basis, the airline fares index was up 33.3 per cent, the largest one-year increase since 1980, though prices were still depressed at the same point in 2021 owing to the Covid-19 pandemic.

From the FT.

At issue is a supply-demand mismatch.

The average price across all US airlines for a domestic ticket booked one week before travel was $208 on May 9, up from $188 on May 2, according to US bank Raymond James.

Meanwhile, US carriers are flying 7 per cent fewer seats in the second quarter than during the same period in 2019, according to Raymond James analyst Savanthi Syth.