Summer Travel Gets Pricier as Fuel Costs Bite Into Budgets

This summer, travelers are feeling the pinch at every turn. Airfares haven't been this steep since May 2022, when post-pandemic demand collided with airline staffing shortages. Gasoline is averaging above $4 a gallon, and AAA warns it could climb toward $5 by season's end. The culprit? A surge in jet fuel prices—doubling in less than three months after geopolitical tensions in the Middle East closed a key shipping channel.

Domestic round-trip airfares hit $623 in April, the highest in nearly four years, according to the Airlines Reporting Corporation. Jet fuel is airlines' second-biggest cost, and carriers are passing those expenses to passengers. Some are also trimming flights, meaning fewer seats and higher prices for travelers who still want to go.

The collapse of Spirit Airlines—the biggest U.S. airline failure in decades—removed a major source of low fares. Other airlines have snapped up its customers, but cheap tickets are harder to find.

Road trips aren't a bargain either. AAA forecasts 39.1 million people will drive at least 50 miles over Memorial Day weekend, up just 0.1% from last year—the smallest growth in a decade. GasBuddy predicts average gas prices of $4.48 on Memorial Day and up to $4.80 by Labor Day if the Strait of Hormuz stays closed.

Despite rising costs, travel demand remains strong. United Airlines expects to carry 53 million passengers this summer, up 3 million from last year. American Airlines forecasts 75 million customers between May and September, topping its 2019 record. Industry executives are optimistic, citing the FIFA World Cup and major concerts as boosts.

For savvy travelers, flexibility is key. Kyle Potter of Thrifty Traveler suggests using Google Flights' Explorer tool and flying on Tuesdays or Wednesdays. “That can save you hundreds per ticket,” he says. His advice for anyone hoarding frequent flyer miles: “Use them now. Miles can lose value. What are you waiting for?”