Rising fuel prices expected to increase holiday airfares

Rising fuel prices are expected to drive up airfares for holiday travelers in the coming weeks. Joseph Schwieterman, director of DePaul University’s Chaddick Institute for Metropolitan Development, predicts that fares could be at least 20% higher a month from now than current rates.

In response to the high-fuel environment, major carriers are adjusting their schedules. United Airlines CFO Mike Leskinen noted that the company is cutting several December flights that are no longer economically viable, with potential adjustments continuing into 2027 if fuel costs remain elevated. American Airlines has also announced plans to reduce some December flight frequencies.

The market is further impacted by the absence of Spirit Airlines, which shut down in May. Its closure has affected key routes, such as those connecting Chicago to West Coast cities, reducing options for budget-conscious travelers. AAA reports that while average airfares were up 2% over the previous year during Labor Day weekend, some popular destinations saw increases of approximately 20%.