What makes flights more expensive

Read More. With vaccination rates rising, Covid restrictions lifting and entertainment venues like Broadway soon reopening, we expect to see domestic demand rise even further through the end of the year. There is particular concern about travel volumes at Thanksgiving and Christmas and the ability of airlines to keep up with demand. International leisure travel is also likely to begin recovering this summer after the US Centers for Disease Control and Prevention recently expanded the list of countries to which Americans can make non-essential trips.

Based on these relaxations and the anticipation of more to come, airlines should expect increased international travel this summer and particularly around the December holidays. A shortage of pilots could keep the airlines from making a real comeback. Not surprisingly, the surge in air travel demand is pushing up ticket prices from their pandemic lows.

Fares have not, however, caught up with ticket prices. Shortfalls in supply. The sudden rush of passengers has left many carriers a bit breathless. Given the spot outbreaks of Covid around the US and relatively low vaccination rates in some regions, it was difficult for airlines to gauge the strength and duration of demand, and their attempts to expand the number of flights sometimes fell short, especially to vacation destinations.

Some carriers are also facing shortages of pilots, based on Oliver Wyman analysis. Airlines executives have said they hope travelers avoid such fares and buy standard coach tickets, which are more expensive.

Airlines lifted the rules in the pandemic to get desperately needed travelers on board as carriers faced record losses. Another thing driving up the cost of a trip is that more attractions like theme parks are reopening. Covid-era capacity restrictions and even masking guidelines except during air, rail and bus travel , are lifting as well. Destinations that for about a year had less to offer visitors than normal.

Airline executives say beach, mountain and other outdoor destinations have been popular with travelers and continue to be important. But with more reopening, other cities are recovering. Even New York City, which is planning to reopen Broadway theaters in September and is now offering indoor dining, is recovering. Fares and hotel rates are still largely below levels because business and most international travel is largely absent. But you should also remember one more thing: When you spot a bargain, take it.

If you wait, you may be costing yourself more money in the end. The longer you wait, the more you'll end up paying, which may not be good for your budget. Personal Finance. Rewards Cards. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data.

We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Your Practice. Popular Courses. Key Takeaways: Flights tend to be the most inexpensive between four months and three weeks before your departure date. Seasonal changes and holidays can create price fluctuations in ticket prices.

The day of the week that you book a flight does not affect the price. Article Sources. Investopedia requires writers to use primary sources to support their work. There's a psychological reason for this: According to research from Nobel Prize-nominated economist Richard Thaler, people derive twice the amount of negative emotion from losses as they do positive emotion from gains. In the context of airfare, Keyes says, that means travelers can miss out on better deals if they feel they're at least avoiding price hikes.

That's a terrible price, but you might book that flight because you're worried it'll go up," he explains. In other words: Don't rely on your most recent trip as a frame of reference. Consider if you're safely within the Goldilocks window, and allow yourself to wait for a better price. Sign up now: Get smarter about your money and career with our weekly newsletter. Don't miss: This simple trick can help you find cheaper airfare, according to Scott's Cheap Flights founder. Skip Navigation.