Oil prices have fallen to levels seen before the Iran war, but airfares have not followed suit.
According to Deutsche Bank, airfares are up 15% to 20% from a year ago, while jet fuel prices have fallen 35% since April.
The consumer price index put out by the U.S. Bureau of Labor Statistics showed that airfare increased by over 29% between November and May.
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Two factors are keeping flight prices high: strong demand and reduced competition following Spirit Airlines’ bankruptcy.
Shares of Delta Air Lines and United Airlines reached record highs last month, while American Airlines shares rose 30%.
Experts say airfares typically decline in the fall, although prices are likely to remain higher than they were a year ago.
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