Air fares have shot up by almost 27% since the same time last year, according to new economic data released by the U.S. Bureau of Labor Statistics.
Between May 2025 and May 2026, airline ticket prices in U.S. cities rose by 26.7%, the bureau found. The figure was included in a broader BLS report that showed inflation in the U.S. reached 4.2% in May, a three-year high.
Analysts have linked the uptick to higher energy prices stemming from the war in Iran. After joint air attacks by the U.S. and Israel in late February, Iran effectively closed the Strait of Hormuz, through which about 25% of the world’s seaborne oil passes in peacetime, as well as about 20% of the world’s liquefied natural gas.
In the months since, jet fuel prices have doubled, leading airlines to raise ticket prices and fees, including for baggage.
Industry trade organizations, including Airlines for America and the International Air Transport Association, have remained generally optimistic about the sector’s near-term outlook, however. Both groups have cited continuing strong demand for air travel, suggesting that consumers have either accepted the higher rates or are following through on pre-planned summer travel in spite of them.
The industry could also be seeing a bump from travel connected to the FIFA World Cup, which starts Thursday. Over one million people are expected to fly internationally to reach tournament matches in the U.S., Canada, and Mexico.
At the IATA’s annual meeting in Rio de Janeiro, director general Willie Walsh said signs are positive that strong demand will continue through late 2026 and into early 2027.
