Industry Insights

U.S. Airfares Are at Historic Lows Making Travel More Affordable and Accessible For All

August 20, 2024

While Americans are continuing to feel the rising costs of everyday goods for many essential expenses such as food, gas, housing and electricity, airfares in the U.S. are at historically low levels because of intense competition among airlines.

Government data shows airfares have trended down over the past two years. In fact, this year fares are averaging 6 percent below 2023 levels and when adjusted for inflation, fares are down 9 percent compared to last year.

When compared to the same month in 2023, household items have seen price increases—eggs have skyrocketed by 19.1 percent, milk has crept up by 1.2 percent and essential living expenses such as electricity have risen 5 percent, with rent climbing 5.1 percent. In stark contrast, airfares actually decreased by 2.8 percent.

This data highlights the unique position airfares are in, maintaining low levels despite the significant price increases in other essential goods and services.

Furthermore, this downward trend in U.S. airfares is not a new phenomenon; since airline industry deregulation in 1978, domestic fares have dropped nearly 50 percent (adjusted for inflation, including fees), making air travel more affordable for all.

For more information on affordable and accessible air travel, click here.