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Think airfare has gotten more expensive? Well, that’s nothing compared to things like groceries, clothes or car insurance prices.
That was essentially the message on Friday from Delta Air Lines CEO Ed Bastian when asked about the increase in flight prices passengers have faced this year amid the war in Iran.
And it probably doesn’t bode well for finding cheap flights in the coming months.
“If people are having concern with respect to airfares, they have much higher concerns with respect to other products,” Bastian said Friday during an appearance on CNBC’s Squawk Box. “Airfares are up but airfares continue to be a tremendous bargain.”
We’ve heard numerous airline industry insiders make this argument in recent months, as carriers have hiked ticket prices to offset a rapid surge in jet fuel costs.
Airlines: Ticket price hikes were overdue
Airline ticket prices haven’t increased as fast as other parts of the economy hit by stubborn inflation since 2022.
In fact, if you adjust for inflation, the average $329 fare reported by the Federal Reserve in May was about 23% cheaper than what flyers paid a decade earlier.
Ask an airline executive — or a Wall Street analyst — and that’s proof an airfare spike needed to happen as carriers themselves have faced rising costs.
“The industry has no other choice,” Delta chief commercial officer Joe Esposito said on the company’s earnings call Friday, while offering little hope for flyers hoping price cuts are around the corner: “A lot of confidence,” Esposito added, “in the fact that we’re going to hold on to the pricing environment.”
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That’s certainly not welcome news for travelers looking to book flights for the tail end of summer — or eyeing what it might cost to fly later this year for Thanksgiving or Christmas.
Read more: The best time to book flights for the cheapest airfare in 2026
How expensive is airfare right now?
As of Saturday, a typical domestic flight booked between three and five weeks ahead of time was 20% more expensive than it was this time last year. That’s according to numbers from our partners at Points Path.
The outlook wasn’t much better for international flights, which in August were running 15% pricier than 2025.
Oil prices down, airfare still up
The higher fares are especially frustrating for travelers as oil prices have fallen — something most of us have already felt at the gas pump.
AAA on Friday reported the national average for a gallon of gas sat at $3.82, down from a peak of $4.56 in late May.
Read more: TPG’s tips on how to save on gas
Late-summer silver lining
The one silver lining? While August fares are more expensive than last year, they’re cheaper than they were a few weeks ago. Domestic ticket prices have dropped about 5% since the peak in mid-May.
Plus, we’ve seen several carriers sprinkle in late-summer and early-fall award deals.
For instance, I just booked a Labor Day weekend flight from the U.S. to Naples, Italy for 21,000 American Airlines AAdvantage miles, one-way. That’s the best transatlantic AA mileage deal I’ve gotten in a few years.
How to find cheap flights in 2026
Best bets to score a late-summer deal?
- Cast a wide net: Comparison shop on sites like Google Flights and Kayak to find routes, travel dates and airlines with the lowest prices — instead of locking in on a destination in advance.
- Fly mid-week: Thursdays, Fridays and Sundays have consistently been the busiest travel days all summer. Save by starting and ending your trip on a Tuesday or Wednesday, if your schedule allows.
- Be flexible with your flexible points: If you have transferable points, you have options. Transferring to international programs like Air France and KLM’s Flying Blue or Air Canada’s Aeroplan can often offer better award deals — and you can go through those carriers to book flights on their U.S. partners.
TPG tip: If you have Bilt Rewards, you can transfer those points to Alaska Airlines and Hawaiian Airlines’ Atmos Rewards programs to book flights on American Airlines. Short flights start at 4,500 points one-way.
Bottom line
Ultimately, it will probably take a noticeable drop-off in air travel demand for carriers to feel compelled to truly slash ticket prices.
And while Fourth of July crowds at airports were slightly smaller than last year, airports — and airplanes — generally remain packed this summer.
Translation? Higher fares may be here to stay for awhile.
“Airfares are a function of supply and demand,” Bastian said Friday. “The demand set is really strong and the supply is in balance.”
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