We Know About Inflation With Groceries, but How Much More Are You Paying for Airfare?
Food prices were 2.2% higher in March of this year than they were the same time last year. But food isn’t the only thing that’s gone up in cost.
Travel has also become increasingly expensive. While travel might have stalled during the pandemic, it’s picked back up since then. Now airfare costs are higher than ever before.
Read Next: 8 Tips To Fly Business Class for the Price of Economy
Find Out: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
The cumulative price change due to inflation from 2019 to 2024 was 22.17%, but airline ticket prices significantly outpaced inflation during that time. In 2022, they rose by an average of 30.2%. Taking only the average airfare inflation rate for 2022, this means a $300 airplane ticket would cost roughly $390.
Although prices have started to level off, the cost of airfare has put many would-be travelers off from purchasing tickets. Here are some reasons the cost of airfare has increased so much — and what you can do about it.
Why Has the Cost of Airfare Increased?
There are several reasons airfare has increased over the past several years, one of which is rising demand.
“Since the pandemic, the demand for air travel has been higher than ever, which keeps driving up airfare prices,” said Peter Vazan, a travel industry insider and the executive vice president of industry relations at Trevolution Group.
Demand has always led to higher prices, but that’s likely not the only reason behind airfare going up. Another big reason is the cost of fuel — and the currency with which it’s purchased.
“One of the main reasons directly linked to the increased airfare fees is, of course, the fuel price that has gone up by 20%-35%,” Vazan said. “Also, jet fuel is purchased in dollars, and a strong dollar creates a competitive disadvantage for airlines located outside the dollar zone. Airlines in the eurozone are now paying 18% more for fuel than when the euro was at its highest. So even if the oil price falls, the exchange rates erase part of this fall.”
Staffing shortages and increased labor costs have also contributed to increased airfare prices.
“Not only the airlines but also airport service providers made massive layoffs during the pandemic and have not been able to go back to their previous capacity yet,” Vazan said. “Thus, more expensive labor means fewer flights and higher costs.”
Be Aware: 9 American Travel Brands To Stay Away From
Lowering the Costs of Airfare Is Still Doable
Although rising costs are never ideal, there are still ways to save money when booking your next flight. Here are a few.
Travel During the Off-Season
“One of my main pieces of advice for those looking to cut their holiday expenses is to travel during the off-season and choose less popular destinations or so-called travel dupes,” Vazan said. “That way, you will also avoid crowds and, in most cases, get better deals.”
Costs for holiday season airfare can be up to 50% higher than costs for flights booked during the nonholiday season, according to Vazan.
Book Tickets Ahead of Time
Booking last minute can result in fewer available seats on the airplane and higher prices. That’s why you should try booking ahead of time — but not too early.
“According to the Expedia Air Travel Hacks Report, booking domestic flights in the U.S. about 28 days before departure can save you an average of 24% compared to last-minute bookings,” said Arsen Misakyan, co-founder and CEO of LAXcar. “However, booking too early isn’t advisable either; airfares tend to be higher if purchased 3.5 to 6 months prior to domestic departures.”
For international trips, book your tickets around 60 days in advance for the greatest savings.
Be Flexible
If you’re flexible with your dates or travel itinerary, you may also be able to score some cheaper tickets.
“If a direct flight is too expensive, look into connecting flights and, where possible, check out pricing for flights to secondary airports,” Vazan said. “If it means traveling more efficiently, don’t be afraid to book open-jaw tickets. You may even combine multiple airlines or different modes of transportation.”
You can also fly through lesser-known airports to potentially save money, though this could disrupt any tight travel plans.
“When booking airfare, many people only consider the major airports in their area. However, checking alternative airports may lead to better deals,” said Greg Kott, CEO of App in the Air. “Smaller airports may have lower prices and less competition, resulting in cheaper airfare.”
Book Flights on Sundays — but Avoid Fridays
“According to industry insights, Sundays are typically the best days to book flights, as that saves you about 5% on domestic flights and up to 15% on international flights compared to other days of the week,” Vazan said.
Avoid booking a flight that actually takes off on a Friday or a Sunday, though.
“Sunday is not the best day for flying, with many people aiming to fly out or go back home for the start of the week,” Vazan explained. “And with increased ticket purchases and flights happening on Fridays, it is considered the worst day for booking flights or accommodations.”
Sign Up for Alerts and Airline Rewards Programs
Many airlines offer exclusive deals or discounts to those who’ve subscribed to their newsletter or joined their rewards programs.
“By signing up for newsletters and alerts, you can stay updated on the latest deals and potentially save money on your airfare. You can also follow airlines on social media to stay updated on any promotions or sales they are offering,” Kott said.
As for airlines rewards programs or credit cards, signing up for those you typically fly with could also be a great way to save money.
“Even if you only travel one or two times a year, the miles will add up over time,” Kott said. “Plus, you can earn points on everyday purchases by using the branded credit card.”
Airline credit cards sometimes come with additional perks too, like early boarding and free checked baggage.
Use Fare Comparison Tools
Another great way to save money on airfare is to use free online tools that compare price fluctuations and notify you whenever they happen.
“Tools like Google Flights, Skyscanner or Kayak allow users to compare prices across multiple airlines and set up alerts for price drops,” Misakyan said.
Will Airfare Prices Continue To Rise?
Now for the big question: Will airfare continue to rise in the coming months or years?
“All in all, it is still hard to predict if flight prices will start going down later in 2024, as the aviation industry is the first to be affected by major global events and economic situations,” Vazan said. “However, prices will undoubtedly fluctuate depending on different factors, such as route, demand and travel dates.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: We Know About Inflation With Groceries, but How Much More Are You Paying for Airfare?