(CNN) — The high cost of fuel is making summer vacations more expensive — and staycations more appealing.
US airlines report that high demand is allowing them to raise airfares and offset the extra fuel costs. But trend watchers say average airfare is still down from pre-pandemic levels.
Average gas prices in the US dipped to $4.27 per gallon on Friday after setting a series of records and peaking on Monday at $4.33, according to AAA.
Sky-high prices
If filling up a car’s tank seems wildly expensive, imagine fueling up an airliner.
Some Boeing 737s carry nearly 6,900 gallons of fuel, which at recent prices reported by the US Energy Department would cost about $13,300 more than a year ago. Delta Air Lines said it expects to burn 750 million gallons of fuel in the first three months of this year alone.
Delta executives said at a conference this week organized by JP Morgan that passengers can expect fare increases “between 15 and 20 dollars each way,” which is about 10% of a $200 ticket. United Airlines and JetBlue Airways also indicated higher fuel costs will be baked into ticket prices.
Flight extras might cost more
Higher fees for checked bags is one way airlines could offset fuel costs.
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Henry Harteveldt of Atmosphere Research said he expects fare increases to be “moderate” and “incremental,” noting airlines have other, less noticeable ways to increase prices.