Airline fares are up 26%. It’s not slowing down eager travelers just yet

Airline tickets are one of the latest costs to get hit with inflation. The Nerd Wallet’s Travel Price Index revealed that the price of airline tickets shot up 26% in the last year.

Is it slowing down customers from buying? Not yet.

According to a Bank of America Institute survey CNBC referenced, spending at airlines shot up to 60% compared year-over-year.

Will the surge in flight prices make up for losses during COVID-19 pandemic?

For now, airlines like Deutsche Lufthansa don’t have immediate intentions of adding more planes to the fleets to bring prices down.

Part of that reservation stems from a continued staffing and equipment shortage. But it also helps with profits. According to Bloomberg, the Bloomberg EMEA Airlines Index showed a “78% gain since October.”

According to CNBC, the fall of 2022 saw the largest jump in price “since the Federal Reserve of St. Louis began tracking the index in 1989.”

Airlines typically used to add more flights when demand rose, but they’re holding back now.

United Airlines Holdings Inc. boss Scott Kirby told Bloomberg that this level of demand is “different than they’ve ever been in my career.” He said it is a “once in a history of the industry opportunity.”

Many customers are also willing to pay the higher prices to get more comfort. Air France-KLM reported that “premium cabins are more full now than before the pandemic,” and scheduled bookings for those seats are arriving in higher numbers than pre-pandemic, per Bloomberg.

What is causing the increase in airline prices?

One thing that has changed is low-budget airlines. The extremely low prices to fly with Ryanair in Europe or Allegiant in the U.S. forced bigger airlines to keep prices lower to compete. But according to Bloomberg, it was always “financially and environmentally unsustainable,” and even Ryanair’s Michael O’Leary “has declared the era” of cheap plane tickets over.

So what can you do if you still want to travel?

Here are some of the things you can do if you still want to get some traveling in after a long hiatus during the pandemic.

1. Fly internationally.

Surprisingly, international flights out of the U.S. haven’t been impacted as highly as domestic flights within the U.S. If you buy a couple of months in advance, you might be able to find round-trip tickets near pre-pandemic prices.

2. Have a flexible schedule, destination.

This might be a little trickier, but if you’re just looking to go somewhere new, you could base where your next trip is based on ticket prices. Google Flights allows you to select flexible dates and will pull up the best prices around when you would like to go.

3. Go in the off-season.

If you just want to see Europe, go in the winter. That counts for other wintery cities, such as Chicago or New York City. Less places will be open, but it will also be less crowded. Many hotels offer deals or discounted rates for rooms during off-seasons.

3. Plan in advance.

You can likely find cheaper deals by starting your search early. Sometimes you can also find better hotel deals earlier before dynamic pricing determines demand and increases prices if demand is high when you want to go.

4. Fly during the week. Avoid weekends.

Another tip is to fly during the week. Flights are typically cheaper, and the airports are less crowded. If you’re going away for more than a couple of days, you can still utilize the weekend by leaving on a Thursday and coming back during the week.

5. Be aware of budget airlines’ added pricing.

Oftentimes, you can find a flight through an airline like Frontier that might seem like a steal. But added-on fees can add up, depending on where you are going and how you like to travel. Frontier charges extra to bring a carry on bag, for snacks during the flight and to choose your seat. If you pack light and just want to get out, that might be just fine. But if you’re wanting a little more comfort, that’s where looking into a bigger airline can sometimes be advantageous.