Airline Ticket Prices Jumped 20 Percent Year-Over-Year. An Industry CEO Says They’re Done Rising
Airlines say fuel-driven fare hikes have peaked. However, that doesn’t mean that travelers should expect price cuts anytime soon. Here’s why.
One executive thinks that airfare increases are over.
In a recent interview, Airlines for America CEO Chris Sununu said the price of plane tickets will stabilize after months of increases.
Earlier this year, geopolitical tensions in the Middle East disrupted 20 percent of the world’s petroleum supply, sending prices skyrocketing across several industries. In response, major airlines raised ticket prices to offset increased gas costs.
People realize that demand is high, Sununu told
“People realize that demand is high,” Sununu told NewsNation “I don’t think you’re going to see prices go up significantly. I think they’re going to be kind of stabilized for quite a while because we’re not getting out of this Iran thing anytime soon, unfortunately. And it’s a bigger issue for places like Asia and Europe.”
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According to Airlines for America, the average price of jet fuel is $3.82, down from $4 in May. Prices hit their peak in April, averaging $4.88 per gallon. According to the U.S. Bureau of Labor Statistics, U.S. airline fares increased by 20.7 percent year-over-year.
Sununu told NewsNation that the price for domestic flights is up 20 percent, adding that he does not “think it’s going up anymore.”
“Demand is strong. People are traveling,” he added. “And that puts money in the economy in a whole lot of different ways. So overall, it’s a very good thing economically.”
Source: www.inc.com
