Airfares Surge 18% to $358 as Delta Traffic Slumps Below 2024 Levels
Air travel traffic has fallen below 2024 and 2025 levels as the average domestic round-trip fare rose 18% to $358 and international fares climbed $115 to $1,064, driven by surging jet fuel costs. Delta CEO Ed Bastian signaled no rush to cut airfares while boosting checked-bag fees by up to $50 each.
1. Airfare Increases and Traffic Decline
US air travel traffic has dipped below both 2024 and 2025 levels as consumers face higher costs. The average domestic round-trip ticket now costs $358, up 18% year-over-year, while international fares average $1,064, a $115 increase from last year.
2. Delta’s Pricing Strategy
Delta CEO Ed Bastian has indicated the airline will retain its elevated pricing power rather than trimming fares if jet fuel costs ease. The carrier also raised checked-bag fees, adding $10 to each of the first two bags and $50 to the third bag fee, now $200.
3. Demand Outlook and Revenue Implications
Sustained high fares and fees may dampen consumer willingness to fly, potentially softening Delta’s discretionary services revenue in April. Investors will monitor upcoming traffic and yield data for signs of a broader pullback in travel demand.