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Airline prices rise above what they were before COVID, but bookings drop

A report says that rising airline prices are making some people hesitate to book flights before the busy summer travel season.

Experts say that since January, domestic flight prices have gone up by 47 percent, which is more than 2019’s prices before the pandemic. This is because of pent-up demand after COVID lockdowns and rising fuel costs.

Adobe Digital Insights, which looked at consumer transactions from six of the top 10 U.S. airlines, found that the higher prices caused bookings to drop by 2.3% in May and by 17% in April.

Adobe analyst Vivek Pandya said, “Some consumers have been able to stomach the higher fares, especially those who put off travel plans during the pandemic. However, the drop in bookings shows that some people are rethinking their desire to get on a plane.”

Overall, people are spending more and flying more on airlines in 2019 than they did in 2018.

In May, people spent 29% more on tickets than they did in May 2019 and made 4.4% more reservations over the same time period. They have spent $37.1 billion on domestic flights online so far this year, which is almost double what they spent in the first five months of last year.

Travelers at an airport in front of a ticket agent
Consumers spent $37 billion more on flights this year or nearly double what they spent a year ago over the same period.
Bloomberg via Getty Images
The rise in air travel has helped airlines that were hurt by the flu to make more money. Delta Airlines said in March that it was making money again.

In April, Delta’s CEO Ed Bastian said, “We are seeing a historic level of sales activity and booking volumes at levels higher than we’ve ever seen in our history.” He also said that consumers weren’t pushing back against higher fares.

Travelers wait in line to check-in at LaGuardia Airport.

But the airline plans to cancel a number of flights between July 1 and August 7 to fix some of the problems it’s been having with operations.

“More than ever before in our history, the weather and air traffic control, vendor staffing, and higher-than-planned unscheduled absences in some work groups are affecting our operation,” said Allison Ausband, chief customer experience officer, in a statement.

About the author

Akanksha Jain

Akanksha Jain love to learn new stuff every day. With a background in computer science and a passion for writing, she loves writing for Startup, Business sections of Editorials99.

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