As U.S. air travel picks up, domestic airfare, hotel rates up

by Jeffrey Swindoll · Mar 21st, 2021 1:06 pm
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Last Updated Mar 24th, 2021 at 7:47 pm

Air travel in the U.S. is on the rise, according to the Transportation Security Administration. Consequently, airfare and hotel prices are up as well.

Kayak, a travel search site, said traffic has been up 27 percent each week, and airfares for the top 100 most-search U.S. destination are up 7% every month.

"Domestic airfares are rising. While discounts can still be found, they're no longer falling into consumers' laps," said Jamie Baker, JP Morgan airline analyst. "Discounted fares increasingly require a hunt, and for many consumers that have been locked up for a year, they're probably not up to the effort."

Despite the gradual increase in sales, U.S. carriers are on track to lose an average of $150-million per day this quarter, according to Airlines for America.

"As long as there is not a setback we are on the road to recovery and we can put those days of talking about cash burn, layoffs and things like that largely in the rear view mirror," said United Airlines CEO Scott Kirby.

Hotel data analysis firm STR said hotel occupancy in the U.S. is averaging more than 51 percent this month. In more popular vacation spots, occupancy is nearly 70 percent.


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