Thanksgiving Airfares Soaring, Driving Down Holiday Flight Bookings as Costs Rise

Higher fares, fewer bookings

Cirium found that average Thanksgiving fares rose 31% in August from a year earlier. Bookings for the holiday period were down 1.6%, according to the aviation analytics firm.

Some Americans are choosing not to travel, despite Thanksgiving being a typically busy period for airlines. The report also says bookings to several locales fell more sharply, but does not name them.

Fuel costs pressure airlines

Jet fuel prices have risen amid the war in Iran, adding to airlines’ operating expenses. Airlines have responded by increasing fares, adding passenger surcharges and reducing routes.

Carriers expect fares to stay high

Airlines have said fares may remain elevated for some time, even if the conflict in the Middle East subsides. They point to fuel costs that are substantially higher than at the same time last year. United Airlines CEO Scott Kirby told Wall Street analysts, “It's expensive to fly airplanes.” He added that the tide must rise for everyone or some airlines “simply won't exist.”