to come down anytime soon

Airfare in the United States saw a significant 26.5% increase in June compared to the same time last year, according to recent federal data. Despite this, airlines are maintaining pricing power and expect demand to remain strong throughout the rest of the year. The average Southwest one-way fare rose to $225.61 in the second quarter, up from $186.65 in 2025.

United and American Airlines forecast a $6 billion increase in fuel costs compared to last year, with both carriers attributing this surge to high fuel prices and strong demand from customers. United CEO Scott Kirby emphasized the escalating labor, maintenance, and airport fees as additional cost drivers. While jet fuel prices have eased from their four-year highs in April, they remain 50% higher than they were in February due to the ongoing military conflict between Iran and the U.S. and Israel.

Southwest feared a supply crunch on the West Coast and sent a boat filled with over 12 million gallons of jet fuel from Houston to Los Angeles in May, marking the first time the airline had shipped fuel through the Panama Canal for a U.S. destination. Despite the challenges, the four largest U.S. airlines — American, Delta Air Lines, United, and Southwest — have gained market share, controlling 82.1% of the seats flown by U.S. airlines this year.

This increase in market share, however, comes as smaller low-cost airlines like Spirit, Avelo, and the merged Allegiant and Sun Country are either shrinking or facing financial difficulties, due to rising costs and volatile fuel prices.