Airfare skyrockets as cost of jet fuel takes off
A 7% average rise in domestic airfare is expected each month until June, according to Hopper.
FOX Business' Jeff Flock reports on what's causing prices to soar from the Philadelphia International Airport.
Airfare is expected to increase in the coming months as the cost of jet fuel takes off and amid increased demand from travelers.
According to mobile travel app Hopper’s Consumer Airfare Index Report for January 2022, an average 7% increase in domestic airfare is forecasted each month until June, topping out at $315 for a round-trip ticket.
Hopper also forecasted that travelers will experience 2019 pre-pandemic prices next month.
FOX Business’ Jeff Flock reported on "Varney & Co." on Wednesday that a "perfect storm" is causing prices to rise as more people have been traveling by air amid an increase in the cost of fuel for airlines.
AIRLINES SLASH FLIGHTS AMID RISING FUEL, OIL PRICES
Flock pointed to an example, citing Hopper data, noting that according to the travel app, a roundtrip flight from Chicago to Los Angeles cost $118.61 in March 2020 versus $320.95 in March 2022.
High oil hits airfares?
According to the U.S. Energy Information Administration (EIA), U.S. Gulf Coast Kerosene-type Jet fuel reached $3.63 per gallon on Monday, continuing to hit the highest prices seen since 2008. On Tuesday, March 8, the price of fuel hit $4.10 amid the war between Russia and Ukraine, according to the EIA.
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On March 18, the price of jet fuel hit $3.37, according to the EIA, which was an increase of about 6% from the week before, more than 30% from the month before and more than 108% from the same time last year, the International Air Transport Association’s jet fuel price index noted, which uses data from energy information provider Platts.
Hopper pointed out in a different news release how the conflict overseas has been impacting travel, noting that Europe has dropped from 21% to 15% of international bookings since the middle of last month, compared to around 30% of international bookings in 2019.
Europe has dropped from 21% to 15% of international bookings since the middle of last month, compared to around 30% of international bookings in 2019.
The travel app also pointed out that since February 12, international bookings have shifted away from Europe to destinations like Mexico, Central America and the Caribbean, which now collectively represent 61% of the app’s international bookings.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BNO | UNITED STATES BRENT OIL FUND - USD ACC | 28.31 | -0.55 | -1.91% |
| USO | UNITED STATES OIL FUND - USD ACC | 69.75 | -1.54 | -2.16% |
On Wednesday afternoon, U.S. crude futures rose to $114 per barrel, while Brent, the global benchmark, was hovering around $121 per barrel.