Domestic airfare is rising much faster than the cost of international travel, even though shorter flights generally consume far less fuel. Data from airfare search company Skiplagged shows domestic ticket prices increased 23.2% between March 2025 and June 2026, compared with an 11.5% increase for international flights. Average U.S. domestic fares also reached $428 during the first quarter of 2026.

The difference shows that ticket prices are determined by more than the amount of fuel used on each flight. U.S. airlines have reduced schedules and limited the number of seats available while demand for summer travel remains strong. Aircraft delivery delays, crowded airports and the financial struggles of low-cost carriers have further reduced competition, allowing major airlines to charge more without risking large numbers of empty seats. Domestic seat capacity was expected to grow by only 0.4% during the third quarter, making a widespread airfare price war unlikely.

International routes often have more carriers competing for passengers, particularly between major cities, which can prevent prices from rising as quickly. Airlines may also treat long-haul routes as strategically important and use premium cabins and cargo revenue to cover a larger portion of their expenses.

Although jet fuel prices have fallen from their recent peak, airlines have little incentive to immediately lower fares. Many are using the savings to recover profits lost when fuel costs surged rather than passing the entire reduction on to travelers. Until domestic capacity increases, budget-airline competition returns or consumer demand weakens, travelers can expect U.S. ticket prices to remain elevated.