Domestic air travel demand is back to pre-pandemic levels — thrilling airline executives. But the industry sees headwinds as the war in Ukraine drives up jet fuel prices and has international travel lagging.
Spring break passengers wait in a TSA security line at Orlando International Airport. While COVID-19 face masks are still required, crowds have increased over last year.
"And I can tell you that at American, we didn't just have our record day, we had three days that were the best, highest days ever," Parker said."Two of them were 15% higher than any day we've ever had."And that claim is borne out by booking data from across the industry. Pandya says the sharp increase in travelers booking flights continues, even though air fares are rising.
"So what we're really seeing is a huge increase in leisure travel and consumers wanting to essentially return to the sort of holiday traveling they did prior to the pandemic," Pandya says. "But also jet fuel prices" are driving air fares up substantially, Berg says, noting that between Dec. 1 and March 8, the per gallon price of jet fuel more than doubled from $1.88 to over $4.10, and fluctuated quite a bit since.
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