Air Fares Rose 33% In Mid February But Travel Demand Remains Strong

Air Fares Rose 33% In Mid February But Travel Demand Remains Strong

People wait in the line to clear the TSA checkpoint at Miami International Airport on November 24, ... [+] 2021. (Photo by Joe Raedle) A new report says airfares rose 33% in mid-February as oil prices surged, yet travel demand continues to be strong as pandemic travel restrictions diminish. Fare data compiled by Cowen COWN analyst Helane Becker said published fares gained 33% week over week and 42% year over year in the week ending Feb. 21. Becker tracks 278 domestic routes across four fare products for American, Delta and United. She said the mid-February increase was driven primarily by increases in United minimum business fares, which skew towards business travelers because the fares are refundable, purchases are made within three days and they include no minimum stay. Oil prices rose Tuesday as the crisis in Ukraine continued. May Brent crude futures hit an intraday high of $104. 65. Before the Ukraine invasion, the last time oil prices traded at $100 was 2014. Prices have climbed steeply since 2020, when they averaged about $39 a barrel. But so far, pent-up demand and easing travel restrictions seem to be influencing travel more than higher fares, driven higher by rising oil prices.