BOSTON, September 19 — The average inflation-adjusted fare for a domestic itinerary out of Boston Logan International Airport hit $419, up from $355 a year ago, according to Bureau of Labor Statistics data. That is the figure that matters for anyone booking a flight into the end of the year. The cause is fuel.
Jet fuel prices have soared over the past year, echoing the hikes drivers have seen in regular gasoline and diesel, and airline executives used an investors conference this week to say the pressure is forcing them to cut routes that bring in less money — particularly lower-cost flights — as carriers work to protect margins.
Fares climbing across markets
The Boston figure is not an outlier. The Kansas City Star reported domestic ticket increases of between 15% and 124% at Kansas City International Airport. Earlier this year, an analysis by Deutsche Bank showed the average price of a transcontinental flight more than doubled, from $167 to $414.
Investors will note the timing. The route-cut announcements came at the conference this week, and the fare data and route-cut pressures are current as of that period.
Which flights will be cut has yet to be determined.
Spirit’s exit reshaped the discount market
Fuel costs were cited as a major factor when Spirit Airlines permanently ended operations earlier this year, a decision that significantly limited discount flight options in the country. The bottom line: the cheapest seats are the first to go when fuel eats the margin, and Spirit’s exit removed a large share of them. Energy Secretary Chris Wright defended the Trump administration over rising fuel costs in an interview with Fox News.
“Oil production, we’re fixing that problem,” Wright said. “Refining is the bigger problem.” Wright pointed to the Russian invasion of Ukraine and the loss of refining capacity in Russia, and said the country is still dealing with the closure of refineries across the United States.
This is not breaking news. It is a trend that has been building for a year, and the conference-week announcements confirmed that carriers intend to keep trimming. What to watch next: whether the route cuts land on the discount end of the schedule, and whether fares out of Boston and Kansas City keep climbing as the year closes.
