Why Flights Are So Expensive Now — And Won't Get Cheaper Soon

Planning a trip? Brace yourself — flights are much more expensive than they used to be, and experts say that's not changing anytime soon.

In June, the average price of a flight in the U.S. was 26.5% higher than a year earlier, according to government data. One traveler said a round trip from New York to Chicago cost her and her husband $800 — a route that used to cost just a couple hundred dollars.

Why are prices so high? The main reason is fuel. Jet fuel is one of an airline's biggest costs, and prices spiked after conflict between the U.S., Israel, and Iran disrupted a major shipping route.

Some key numbers:

• Jet fuel is up about 50% since late February
• United and American each expect to pay $6 billion more for fuel this year
• Southwest's average one-way fare rose to $225.61 (from $186.65 a year ago)

The surprising part: people keep buying tickets anyway. Airlines say demand is still strong, giving them "pricing power" (the ability to raise prices without losing customers). United's executives say they see "minimal to no negative impact" from higher prices — so they plan to keep fares high.

Less competition also plays a role. The four biggest airlines — American, Delta, United, and Southwest — now control 82.1% of U.S. airline seats, up from 79.7% in 2022. A big reason is the collapse of Spirit Airlines, the famous budget carrier, which shut down in May. That removed tens of millions of cheap seats from the market overnight, leaving fewer low-cost options.

Bottom line: With high fuel costs, rising expenses, strong demand, and fewer budget airlines, cheap flights are likely gone for a while. If you're traveling this year, expect to pay more — and book early.

This is an AI-generated summary. Read the original article at: https://www.cnbc.com/2026/08/02/flights-are-getting-even-more-expensive-as-fuel-prices-rise.html