Third Quarter 2023 Average Air Fare Decreases 6.9% from Second Quarter 2023

Tuesday, January 16, 2024

BTS 04-24

The average U.S. domestic air fare decreased in the third quarter of 2023 to $368, down 6.9% from the second quarter 2023 inflation-adjusted fare of $395. Passenger demand decreased in the third quarter to 86.6 million passengers, down from 88.8 million passengers in the second quarter.

3Q 2023 Air Fare Infographic

Itinerary Fares: Round-trips, but includes one-way tickets if no return is purchased.
Breakout of trip types: one-way, 41% ($267); round-trip, 59% ($451).

Fare calculations by BTS
*Based on a sample of approximately 10% of 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. Average Domestic Fare in third quarter 1995-2023

Inflation-Adjusted Average Air Fares
Third Quarter 2023 fare ($368):
Compared to all third quarters: Down 38.3% from the highest 3Q fare, $597 in 2000.
Compared to all quarters: Down 40.5% from the highest fare for any quarter, $618 in 1Q 1999.
Start of BTS records: Down 39.1% from 1Q 1995 ($604).
Recent high: Down 15.9% from 4Q 2018 ($437).
Recent low: Up 27.2% from 3Q 2020 ($289).
All-time low: Up 27.2% from the previous low 3Q 2020 ($289).
All-time third quarter low: Up 27.2% from the previous low 3Q 2020 ($289).

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 75.6% of total operating revenue of $134.0 billion from passenger fares during the nine months of 2023, down from 88.5% in 1990.

Bar chart showing U.S. average domestic quarterly fares 4Q 2019 - 3Q 2023

Unadjusted Average Air Fares
Third Quarter 2023 fare ($368):
Trend: Down 6.1% from 2Q 2023 ($392).
Compared to all third quarters: Down 7.9% from the highest 3Q fare, $399 in 2014.
Compared to all quarters: Down 8.6% from the highest fare for any quarter, $402 in 2Q 2014.
Start of BTS records: Up 23.9% from 1Q 1995 ($297) (compared to 100.7% consumer price increase).
Recent low: Up 50.3% from 3Q 2020 ($245).
Recent high: Down 7.4% from 2Q 2022 ($397).
All-time low: Up 50.3% from 3Q 2020 ($245).
All-time third-quarter low: Up 50.3% from 3Q 2020 ($245).

Fares by Airport

Bar chart showing fares by airport group based on number of originating domestic passengers in 3Q 2023

Fares by airport group:
Highest: 53 airports with 100,000-499,999K originating passengers ($375)
Lowest: 12 airports with 1.0-1.49 million originating passengers ($356)

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