Airfare trends in post-pandemic US show mixed results amid economic challenges

Airfares today remain below their pre-pandemic levels despite recent increases over the past year. "Five years ago, in October 2019, the average airfare in the United States was 1.5% higher than it is today," illustrating lingering downward price pressures from the pandemic.

The transition towards leisure travelers has impacted fare structures since they generally pay less than business travelers. Following Russia's invasion of Ukraine in 2022, airfares spiked but have since decreased to current levels.

Industry dynamics continue to evolve with new budget airlines like Avelo Airlines and Breeze Airways increasing competition and impacting prices. Meanwhile, business travel remains below past frequencies due to remote work trends.

Future expectations hinge on several factors including potential policy changes under a new presidential administration aimed at curbing inflation which might lead carriers to lower prices further. However, developments such as Spirit Airlines' bankruptcy and mergers like Alaska Airlines with Hawaiian Airlines could decrease low-cost options and reduce competitive pricing pressures.