High fares have led some Americans to rethink Thanksgiving travel, CBS News reported, as airlines also face increased operating costs from jet fuel and labor.
Cirium’s latest available data showed Thanksgiving bookings down 1.6%, CBS News reported. The firm also found average holiday fares 31% higher in August than a year earlier and steeper booking declines for six destinations: Newark fell 24.6%, Seattle 15.3%, Miami 13.2%, Dallas 12.6%, San Francisco 11.7% and Denver 11.6%.
The booking decline falls during a period when airlines normally see heavy holiday traffic, CBS News reported. The outlet said ticket prices have prompted some Americans to abandon Thanksgiving trips.
Jet fuel made more expensive by the war in Iran has added to carriers’ expenses, CBS News reported. Airlines have responded with higher fares, passenger surcharges and route cuts, the outlet said.
CBS said fuel costs remain above year-earlier levels and that jet fuel is airlines’ second-largest expense after payroll. It also reported higher labor expenses following renegotiated deals with pilots and flight attendants, while carriers expect fares to stay elevated even if fighting in the Middle East subsides.
United Airlines CEO Scott Kirby told Wall Street analysts last week, “It’s expensive to fly airplanes,” CBS News reported.
