Record Jet Fuel Costs Push Holiday Airfares Higher Despite Fewer Flyers

WHO:

CNBC - American Airlines Chief Commercial Officer Nat Pieper said the airline was “actively prioritizing yield versus load factor” and was “really happy” with the results.

CNBC - Southwest CEO Bob Jordan said third-quarter passenger fares were about $3 above forecast and passenger volumes also exceeded expectations.

CNBC - United Airlines CEO Scott Kirby said he was “pleasantly surprised” by airlines’ ability to raise yields and pass on much of the fuel-price increase.

NPR - Herb and Latasha Williams flew from Dallas to Baltimore/Washington International Airport for a birthday vacation; Latasha Williams considered but hesitated to book a warm-weather holiday trip.

NPR - Hayley Berg, Hopper’s lead economist, said holiday fares were at a 10-year high and airlines needed to pass fuel costs to consumers.

NPR - Delta CEO Ed Bastian said consumers had shown a “limited amount of resistance” and still considered airfare “reasonably affordable.”

NPR - Ryanair CEO Michael O’Leary predicted large fare increases in Europe.

NPR - Airlines For America head Chris Sununu said airlines were absorbing most fuel-cost increases, with some passed to customers.

NPR - Rachel Stern of Frederick, Maryland, said she would drive to Chicago with her children because plane tickets cost too much. Mary Haller of Bethany Beach, Delaware, said she planned to travel to Europe despite a significant ticket-price increase.

WHAT:

CNBC - American Airlines’ third-quarter load factor was 83.4%, down from 86% in the same quarter of 2025.

CNBC - U.S. checkpoint screenings were on track for their first annual decline since 2020. From April through the article’s Thursday, the TSA screened about 9.3 million fewer people than over the same period in 2025, a decline of less than 2%.

CNBC - September airfares were up more than 22% year over year; Hopper expected holiday fares to be the most expensive in years.

CNBC - Southwest’s average third-quarter fare was $231.69, nearly $50 higher year over year. Its revenue-passenger count fell 3.2% to about 33.5 million. The fare figure excluded new fees for checked bags and seats nearer the front.

CNBC - United flew 2.4% more passengers in the third quarter year over year; its unit revenue rose 16%, its largest increase since the pandemic.

NPR - U.S. jet fuel averaged more than $4.75 per gallon, nearly twice the year-earlier price and close to an all-time high. CNBC reported U.S. Gulf Coast spot prices of $4.63 per gallon and said fuel prices were more than double year-earlier levels.

NPR - Thanksgiving airfares were up about 30% year over year, and Christmas-holiday tickets were up more than 20%.

NPR - O’Leary said European airfares could rise 10%, 15%, or 20% next year and described the coming 12 months as potentially bringing Europe’s “biggest increase in airfares” in history.

WHERE:

NPR - The Williamses flew from Dallas to Baltimore/Washington International Airport. Stern planned to drive from Maryland to Chicago.

NPR - O’Leary made his comments in Belgium; Sununu spoke with CNBC.

WHY:

CNBC - Airlines raised fares to recover some of the sharp rise in jet fuel costs, a major expense after labor.

NPR - Rising jet fuel costs were cited as the reason airlines were increasing holiday fares.

HOW:

CNBC - Airlines prioritized higher fares and yield over filling planes or maximizing passenger counts; executives described demand, particularly for premium cabins such as business class, as robust.

NPR - Berg said travelers were shopping around and booking earlier to secure better prices; holiday bookings had already increased in September.

(UPDATED October 23, 2026 13:23 UTC)

Airfares are climbing as airlines pass along some of the sharp increase in jet fuel costs, and holiday tickets are especially expensive. Thanksgiving fares are up about 30% from a year earlier, while Christmas tickets have risen more than 20%. Hopper economist Hayley Berg says holiday fares are at a 10-year high, and travelers are booking earlier and shopping around for deals. Airline executives say customers are still accepting higher prices. American is prioritizing fare revenue over filling seats, while United says it has been able to raise fares and recover much of its fuel costs. Southwest’s average fare reached $231.69 in the third quarter, nearly $50 higher year over year, even as passenger numbers fell. Some travelers are changing plans: one Maryland family plans to drive to Chicago, while another traveler still intends to visit Europe.