Second Quarter 2023 Average Air Fare Increases 1.5% from First Quarter 2023

Tuesday, October 17, 2023

BTS 49-23

The average United States domestic air fare increased in the second quarter of 2023 to $392, up 1.5% from the first quarter 2023 inflation-adjusted fare of $386. Adjusted for inflation (constant 2023 dollars), the average second quarter 2023 air fare was up 27.7% from $307 in the first full quarter of the pandemic in 2020 and down 7.1% from fourth quarter 2019 (pre-pandemic) fare of $422.

In the second quarter of 2023, passenger demand increased with U.S. airlines reporting 88.8 million originating passengers, up 87.1% from 11.5 million passengers in the second quarter of 2020.

Second quarter 2023 U.S. Average Domestic Fare infographic

Itinerary Fares: Round-trips and one-way tickets if no return is purchased.
Breakout of trip types: one-way, 40% ($279); round-trip, 60% ($484).

Fare calculations by Bureau of Transportation Statistics (BTS)
*Based on a sample of approximately 10% of total tickets sold.
Total ticket value: The price charged by airlines at time of ticket purchase.
Included: All fees and charges levied by an air carrier required for the passenger to board the aircraft. Also, additional taxes and fees levied by an outside entity at time of ticket purchase.
Not included: Fees for optional services, such as baggage fees, seat upgrades, and selecting an assigned seat on the aircraft.

Line chart showing U.S. Second Quarter Domestic Average Fare for 1995 through 2023

Inflation-Adjusted Average Air Fares
Second Quarter 2023 fare ($392):
Compared to all second quarters: Down 35.0% from the highest second quarter fare, $603 in 1999.
Compared to all quarters: Down 36.1% from the highest fare for any quarter, $613 in first quarter 1999.
Start of BTS records: Down 34.6% from first quarter 1995 ($599).
Recent high: Down 9.7% from fourth quarter 2018 ($434).
Recent low: Up 36.7% from third quarter 2020 ($287).
All-time low: Up 36.7% from the previous low third quarter 2020 ($287).
All-time second quarter low: Up 27.7% from the previous low second quarter 2020 ($307).

Other Revenue: In recent years, airlines have increasingly obtained additional revenue from passenger fees, as well as from other sources. U.S. passenger airlines collected 75.3% of total operating revenue of $87.2 billion from passenger fares during the six months of 2023, down from 88.5% in 1990.

Bar chart showing U.S. Domestic Quarterly Fares for Fourth Quarter 2019 through Second Quarter 2023

Unadjusted Average Air Fares
Second Quarter 2023 fare ($392):
Trend: Up 2.7% from first quarter 2023 ($382).
Compared to all second quarters: Down 2.6% from the highest second quarter fare, $402 in 2014.
Compared to all quarters: Down 2.6% from the highest fare for any quarter, $402 in second quarter 2014.
Start of BTS records: Up 32.0% from first quarter 1995 ($297) (compared to 101.6% consumer price increase).
Recent low: Up 60.1% from third quarter 2020 ($245).
Recent high: Down 1.4% from second quarter 2022 ($397).
All-time low: Up 60.1% from third quarter 2020 ($245).
All-time second-quarter low: Up 51.2% from second quarter 2020 ($259).

Bar chart showing fares by airport group based on number of originating domestic passengers in second quarter 2023

Fares by airport group:
Highest: 6 airports with 1.5-1.99M originating passengers ($378)
Lowest: 50 airports with 100,000-499,999K originating passengers ($399)

Additional data: see Top 100 Airports or All Airports. Third Quarter 2023 average fare data will be released January 16, 2024.

Standard error: Results for average fares are based on the BTS Origin & Destination Survey, a 10% sample of airline tickets used during the quarter. Averages for airports with smaller samples may be less reliable. For first quarter 2023 results based on all itinerary fares, the standard error is 0.30 and the median fare is $323.45. The 90% confidence interval ranges from $391.29 to $392.29. For results based on round-trip fares, the standard error is .38 and the median fare is $422.22. The 90% confidence interval ranges from $483.66 to $484.93. For results based on one-way fares, the standard error is .36 and the median fare is $228.31. The 90% confidence interval ranges from $278.10 to $279.28.