October 4, 2022
Soaring flight demand: Low supply means high prices

Travel is expected to be up 8.3% compared with Memorial Day weekend last year, according to AAA. The lowest average airfare is up about 6% from Memorial Day weekend 2021.

“Everybody wants to go somewhere,” Lovell said. “Demand is probably close to the highest I’ve ever seen. You know there’s so much pent-up demand. People have been not able to travel for the last two years.”

“During the pandemic, airline travel dropped to near zero and as a result of that, they had to really look at labor forces … they offered a lot of buyouts, early retirements to a lot of their pilots so that they could survive the economic downfall associated with the pandemic,” Grossman said.

“I think our most recent fuel delivery for us at a wholesale, not a retail cost … was over $6 a gallon for aviation fuel,” Grossman said. “I’ve seen some airports that are selling their retail costs of fuel upwards of $10 a gallon.”

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