U.S. holiday airfares reach 10-year high

Winter holiday airfares in the United States have reached a 10-year high, according to analysis from the travel site Hopper. Domestic round-trip airfare for Thanksgiving is averaging approximately $402, representing a 31% increase from last year. Fares for travel immediately following Thanksgiving are also rising, currently averaging $452, up 23% year-over-year.

Several factors are contributing to these price increases. The absence of Spirit Airlines, which ceased operations earlier this year, has reduced low-cost competition in the market. Additionally, geopolitical tensions involving Iran have impacted jet fuel costs.

International travel costs are also elevated, with fares to Mexico and Central America up 23% and Europe up 15% compared to last year. Conversely, travelers heading to Asia, Oceania, and the Middle East may see prices similar to or slightly lower than 2025 levels. Hotel prices for the Christmas season are also trending higher, averaging $197 per night, an 18% increase from the previous year.