What happened
The U.S. Bureau of Labor Statistics released May 2026 CPI data showing airfare costs have surged. Year-over-year, airfare is up 26.7%, with the index rising from 253.714 to 329.824. Over the past five months alone, costs have increased 30.0%. The primary driver cited is skyrocketing jet fuel prices due to the Iran conflict, compounded by legacy carriers' pricing strategies to maintain higher fares even if oil prices drop. United CEO Scott Kirby noted that pricing increases are likely to hold. The article also mentions Spirit Airlines' recent liquidation as a factor reducing affordable capacity