Domestic airfares climb faster than international tickets

Domestic airfares are rising much faster than international ticket prices this summer, even though shorter U.S. flights burn far less jet fuel. The gap matters for travelers because analysts cited by Fortune say strong demand and tighter airline capacity could keep fares elevated in the near term.

Airfare search engine Skiplagged found that U.S. domestic flight prices rose 23.2% from March 2025 to June 2026, Fortune reported. International fares increased 11.5% over the same period, according to Skiplagged, while domestic summer ticket prices reached their highest level for the season since 2022.

Fuel alone does not explain the difference. Fortune reported that international flights often burn about 1,500 to 3,000 gallons of fuel per hour and 15,000 to 30,000 gallons per trip, while domestic flights use about 750 to 900 gallons per hour.

Fuel prices added pressure, but capacity is driving fares

Jet fuel costs nearly doubled during the Iran war, Fortune reported, as shipping disruptions around the Strait of Hormuz raised concerns about supply. The strait normally carries about 20% of global oil flows, according to Fortune.

Willie Walsh, outgoing director general of the International Air Transport Association, warned this month that the airline industry’s profits could be cut in half because of weaker demand and higher costs, Fortune reported. But Christopher Anderson, a Cornell University professor who studies the airline business, told Fortune that the outcome was less severe than many expected.

Anderson said fuel prices and fares are linked, but the connection is weaker than many travelers assume. He told Fortune that airlines have not passed the full increase in fuel costs to passengers.

Airlines have also reduced available seats and focused more on profitability, according to Anderson. American Airlines said this month it would suspend six selected U.S. routes in August and September amid higher fuel costs, Fortune reported, while Bloomberg reported that U.S. carriers have cut seats around the July 4 travel period.

With fewer flights available and summer demand holding up, airlines have been able to charge more, Anderson told Fortune. American Airlines CEO Robert Isom told Bloomberg TV last month that people still want to travel and that travel remains a bargain.

Premium seats and Spirit’s exit changed the market

Fortune reported that Spirit Airlines ended operations earlier this year, sending some price-conscious customers to other carriers. That shift gave remaining airlines more room to keep fares higher, according to the report.

Airlines are also selling more premium products. Anderson told Fortune that carriers have more pricing power in cabins above entry-level economy and can recover higher fuel costs more easily through those fares.

International fares have risen more slowly because demand has not shifted in the same way, Fortune reported. There are also fewer international flights to begin with, so airlines have less need to cut capacity to fill planes.

Lower fuel has not yet brought lower fares

Oil and jet fuel prices have eased since the spring. Fortune reported that jet fuel was around $2.87 a gallon, down from nearly $5 in April, citing industry data.

Deutsche Bank Securities said airlines raised fares as recently as two weeks ago, Fortune reported. Anderson said airlines need time to restore capacity, and he does not expect prices to fall quickly for travelers who waited to book.

Frontier could add capacity after Spirit’s exit, Fortune reported, but Anderson said travelers should expect fares to stay high for now. He told Fortune that air travel is unlikely to become sharply cheaper soon.

This story draws on original reporting from Fortune.