It’s pretty obvious that flight prices have skyrocketed. Those great deals on flights you used to be able to snag seem to be long gone. Pent-up demand has caused a chaotic summer of travel, which ranges from delays, cancellations, lost baggage and increased flight prices. Show According to the U.S. Bureau of Labor Statistics’ Consumer Price Index, airfare prices recently hit their largest one-month jump in history – climbing 18.6% from March to April 2022. Since then, prices don’t seem to be going down, either. In late March, prices were up some 40% from January. Over the last year, prices are up 25%. Unfortunately, sky-high airfare prices can be attributed to several things. First, airlines have had to increase their fares due to jet fuel prices, which have gone up considerably. Jet fuel usually accounts for at least 30% of airlines’ operating expenses. Another problem is staffing. Airlines’ staffing issues are not only with flight attendants but also with pilots. Lastly — and perhaps the main reason — flight prices have climbed due to the simple nature of supply and demand. It’s clear that everyone is ready to return to the skies after the pandemic grounded many travelers for years. When Flight Prices May DeclineThe big question remains, when will we see flight prices go down? Nobody can say for sure when prices will start to go down. However, some experts expect things to mellow out once summer travel winds down, likely in September or October. With fuel prices still elevated and the demand for travel still going strong, it could be awhile before consumers see a meaningful reduction in flight prices. While the CPI report for June came in ahead of expectations, we’re starting to see some portions of inflation fall on a month-to-month basis. That includes hourly earnings and core CPI readings. Crude oil prices have also been under pressure, down more than 20% over the past month. Further, crude is down more than 30% from the high in February. While inflation is still high, we’re seeing some pricing pressure alleviate. Given that many airlines buy their fuel in advance though, those higher prices may have a lingering effect on flight prices. Worries of a recession may eventually alleviate some of the flight demand as well. Despite the robust demand and rise in fares, airline stocks haven’t reflected those realities. Delta Air Lines (NYSE:DAL) is fresh off a top- and bottom-line miss and is hovering near multi-month lows. So are United Airlines (NASDAQ:UAL), American Airlines (NASDAQ:AAL), JetBlue Airways (NYSE:JBLU) and Southwest Airlines (NYSE:LUV). About the only one that’s done well is Spirit Airlines (NYSE:SAVE), and that’s as it has multiple bidders in a takeover attempt. On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Here's how to get the best deal. Words by Sabine Leroy. It’s July and I’m stuck in Dubai. Don’t let the photos of glitzy beach clubs, the shimmering ocean and dune-bashing influencers fool you, it’s scorching hot. I grew up in Australia so when I mean hot, it’s not just a cute 37°C once in a while. The day starts at 35°C and reaches 40, sometimes even 50 degrees in the middle of the day. Those photos were probably taken at about 6am or back in winter. What does the weather have to do with airfare prices? While it’s my home away from home and I love living here, the United Arab Emirates is not really where you want to be from June to August. And yet somehow, airfares are fetching $3,539 for a return ticket from Sydney to Dubai when flights should easily cost half to travel in what’s easily the worst time of year to be here.  Why are airfare prices soaring?You only need to look at chaotic scenes and endless queues in airports across the world to understand: travel is back with a vengeance. The floodgates are open and everyone is jumping on a flight. Coupled with Covid staffing cutbacks still in place and cancelled flights, demand is even higher. “Demand for flights spiked at a time when airline capacity was poor and this saw airfares surge,,” explains Chief Economist at AMP, Shane Oliver. And it’s likely to stay that way for the meantime according to Brent Novak, General Manager at Flight Centre Australia. “Until international airlines return to full workforce capacity that they reduced as a result of the pandemic, we’re going to see demand for air travel exceed supply for a number of months yet, and this is going to keep upward pressure on airfares, especially to destinations in Europe and North America.” Related story: Air New Zealand unveils incredible new economy ‘bunk beds’ Adding fuel to the fireRussia’s war on Ukraine continues to impact oil prices, with the knock on effect on jet fuel keeping airfares high. But Novak feels airlines should ensure the increase reflects the actual increased cost of fuel for that journey, rather than a rigid fuel surcharge. “In this scenario, a person travelling on a shorter flight would theoretically pay less than a person travelling on longer trips to North America and Europe.” When will they come down?Oliver believes they will become cheaper, but it may take a while. “Going forward, airlines will gradually put more planes in the air boosting supply and meanwhile demand will likely fall again reflecting the deteriorating economy – on the back of rising rates and cost of living pressures – and in response to bad experiences with air travel.” Related story: These are the most complained about tourist attractions in the world How can I get the best deal?No destination should be off the table. Yes the Amalfi Coast is amazing but this is a perfect opportunity to travel somewhere you’ve never considered. Sites like com allows you to type ‘anywhere’ as your destination and will highlight the cheapest fares around the world. Mix and match. Instead of booking a flight to Europe with the same airline, DIY and make your itinerary using a mix of airlines. This is a bit risky if there are any flight delays for a connecting flight and making sure your luggage follows you. Book travel insurance to make sure you’re covered if anything goes wrong. Embrace the stopover. The mix and match technique will lead to more transit time in airports. Instead of waiting in an airport for hours, spend a few nights in the city. It minimises the luggage issue and stress of missing your next flight. Book early. “Our advice to anyone trying to get the lowest airfares to North America is to book early, ideally more than six months in advance,” says Novak. “We’re looking forward to airlines increasing their capacity by next year’s northern summer, and this may help ease the upward pressure on airfares.” Related story: What to do if your flight is cancelled, according to an airline worker This article originally appeared on Escape.com.au. It has been reproduced here with permission. Will the flight price go down?Flight prices are expected to drop significantly in August and into the early fall following a very busy — and expensive — summer travel season. According to Hopper, domestic airfare is expected to drop 25% in August, compared to its peak in May of this year.
Do airlines reduce prices closer to departure date?Specifically, plane tickets usually don't get cheaper closer to the departure date. Instead, flights tend to be the most inexpensive when you book between four months and three weeks before your departure date. According to CheapAir.com, you can expect rates to go up after that period.
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Will airline prices go down in 2022
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