Airfares rose 0.8% in September — twice as fast as the rate for all items — according to Consumer Price Index (CPI) data released Thursday by the Bureau of Labor Statistics.
On an annual basis, however, airfare inflation was up a massive 42.9%, the highest on record and more than five times higher than the overall inflation rate of 8.2%. Last month’s CPI report showed airfares rising 33% annually.
Airline ticket prices have climbed much faster than overall inflation during the pandemic recovery due to several factors. The industry ground to a virtual standstill in the earliest days of the pandemic and recovery was initially slow. Russia’s war in Ukraine has driven up fuel costs substantially and, in recent months, an extraordinarily strong rebound in travel demand has collided with massive challenges