Plane Ticket Prices Are On The Rise, Are Gas Prices To Blame?

It appears the strong demand for travel is to blame for the recent increase in airline ticket prices, not so much the rising cost of jet fuel.

At a J.P. Morgan investor conference on Tuesday, several airline executives spoke about the current demand for air travel being stronger than they had expected.

“We’re seeing an increase in demand that is really unprecedented,” Delta Air Lines president Glen Hauenstein said, according to CNN. “I have never seen...demand turn on so quickly as it has after Omicron.”

CNN estimates that the surge in demand has lifted fares by $15 to $20 for a $200 ticket, an 8% to 10% increase on what Delta planned to charge for plane tickets.

However, Hauenstein said that the rise in prices has “allowed us to more than offset the fuel cost.”

JetBlue CEO Robin Hayes says that the airline has yet to find a limit on what consumers will pay, attributing it to a desire to travel after two years in lockdown pandemic conditions.

“We're still dealing with pent-up demand from people,” Hayes said, according to USA Today.

American, United and Delta airlines all agreed on the same call that the average price for a gallon of jet fuel could rise as much as 33% this quarter compared to the end of 2021, and up 47% to 72% over last year’s costs.

However, another COVID-19 variant wave could present another challenge to the airline industry if people decide the risk of travel is not worth it.