Airfare has increased exponentially in the last several years
This article will explore several macro and micro reasons Americans will see much higher ticket prices this year and potentially beyond. The main reasons are as follows.
New aircraft delivery delays
Airline seat capacity fluctuation
Industry consolidation
Jet fuel price volatility
Supply-chain and delivery woes
Since the COVID-19 pandemic wreaked havoc on the global airline industry nearly five years ago, major aircraft manufacturers have struggled to deliver aircraft promptly. Supply chain issues coupled with labor disputes have crippled Airbus , Boeing , and engine manufacturer Pratt & Whitney immensely.
Related Boeing Delivery And Supply Chain Delays Continue In 2025 Supply chain problems and delivery delays for Boeing continue to increase, causing the aviation industry to prepare for a struggling year ahead. Boeing has previously suffered aircraft delays and manufacturing in 2023 and 2024, but also struggled with supply chain problems and design flaws. The aircraft manufacturer continues to struggle into the new year, and delays for aircraft like the Boeing 777-9X and the new Air Force One have been pushed further back. The cost overruns associate with Air Force One were a point of contention for President Donald Trump even before he entered office for his first term, in December of 2016, and Simple Flying reported in 2020 that the plane was expected for delivery in 2024. These are causing big problems for airlines. For example, Southwest is spending money they didn’t intend to spend on aircraft that they have planned to retire, like the Boeing 737-700 and Boeing 737-800. This is attributed to delays on the Boeing 737 MAX. Boeing has caused othe
Airbus and Boeing planned to increase their narrowbody production rates to satisfy airlines’ fleet growth plans. After the pandemic, Airbus and Boeing planned to produce over 50 aircraft per month. Putting extreme pressure on each manufacturer’s long list of suppliers. Many of these major aircraft manufacturers’ suppliers have specific aircraft parts back ordered as they do not have as much lead time to be created as they once did. This results in the airframe being unable to be completed for delivery.
Related The Global Impact Of The Pratt & Whitney Engine Issues The issue led to a $5.4 billion charge to RTX, parent company of Pratt & Whitney.
Photo: VDB Photos | Shutterstock
According to ch-aviation, in 2024, Southwest Airlines was supposed to receive 46 Boeing 737 MAX 8 aircraft, but only 20 were delivered, stunting the low-cost carriers’ future growth plans.
Why Is Air Fare Projected To Increase In The US This Year?
