Holiday airfares projected to rise due to fuel costs

Holiday airfare prices are projected to rise significantly for the upcoming season. Data indicates that domestic round-trip fares for Thanksgiving are approximately 13% more expensive than in 2025. For the year-end period between December 18 and January 3, domestic fares have increased by about 18%, while international fares are up by an average of 19% compared to last year.

These price hikes are attributed to surging global oil prices driven by conflict in Iran, leading airlines to pass higher jet fuel costs on to passengers. Despite these increases, airline executives report that consumer demand remains strong. For example, United Airlines reported its busiest month ever in July, suggesting that travelers are willing to absorb the higher costs, which may limit the incentive for carriers to reduce prices even if oil costs stabilize.