Flight Prices Predicted to Get MORE Expensive. Here’s Why.

If you’re planning to travel soon, you may want to increase your airfare budget.

There are several reasons why your 2022 Disney World vacation will cost more than ever, and experts predicted that airfare costs will increase in 2022 due to a variety of reasons such as inflation, fuel cost, labor, and more. In light of recent global events, jet fuel prices are increasing, and here’s how your travels could be affected.

According to CNBC, Russia’s invasion of Ukraine has led jet fuel prices to surge to the highest prices in over 13 years, rising 32% just last week. Analysts expect U.S. airlines to adjust first-quarter profit and revenue estimates as a result.

Fuel is generally the second biggest expense for airlines, behind labor, and airlines are actually limited by how much they can raise prices for passengers. Despite airports seeing more travelers recently, higher fuel costs are expected to essentially cancel out the expected higher revenue following the decrease of COVID-19 cases.

So far, CNBC reports that fuel prices have increased by more than 50% in 2022, and airline stocks have dropped following this price surge. Airline analyst Andrew Didora noted that although travel demand could surpass supply, “it will not create nearly enough pricing to offset the fuel move.”

It’s important to note that you might not see airline ticket prices increasing right away. Airline analyst Helane Becker predicts a four-month delay before price increases hit the market, stating that “it is likely the next few months will be financially concerning, even though traffic is strong.”

Although more and more people are traveling, fuel prices could still cause airline ticket costs to increase. We’ll be watching this developing situation closely, so stay tuned for more travel updates.