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Airfare soars amid high fuel prices and travel demand
By Shubhangi Mathur - Apr 13, 2022, 02:32 AM ET
Last Updated - Feb 21, 2024, 03:14 PM EST
Consumers spent $8.8 billion on domestic U.S. airline tickets last month
Airfare surged in the U.S. in March amid high fuel prices and increased demand for travel.
CNBC reported that consumers spent $8.8 billion on domestic U.S. airline tickets last month, up 28% compared with March 2019, before the Covid pandemic, while fares surged 20%, according to data from the Adobe Digital Economy Index.
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Amid Russia’s invasion of Ukraine, oil prices have increased dramatically as Moscow plays a key role in the oil market. People are also willing to travel with the decrease in Covid-19 cases after the Omicron spike.
High airline fares come at a time when inflation rose 8.5% in March—the highest level in more than 40 years.
Airlines expect to transfer high jet fuel prices to travelers. Benchmark U.S. Gulf Coast jet fuel settled at $3.2827 a gallon on Monday, up nearly 50% from the start of 2022 and more than double a year ago, according to Platts, reported CNBC.
Picture Credits: Getty Images
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