First Quarter 2023 Average Air Fare Decreases 4.1% from Fourth Quarter 2022

U.S. Department of Transportation sent this bulletin at 07/18/2023 11:17 AM EDT

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BTS 34-23

Tuesday, July 18, 2023

First Quarter 2023 Average Air Fare Decreases 4.1% from Fourth Quarter 2022

The average U.S. domestic air fare decreased in the first quarter of 2023 to $382, down 4.1% from the fourth quarter 2022 inflation-adjusted fare of $398. Adjusted for inflation (constant 2023 dollars), the average 1Q 2023 air fare was up 34.7% from $283 in the second full quarter (Q3) of the pandemic in 2020 and down 8.4% from the pre-pandemic Q4 2019 fare of $417.

In the first quarter 2023, passenger demand increased with U.S. airlines reporting 75.4 million originating passengers, up 138.8% from 31.6 million passengers in the fourth quarter of 2020.

Itinerary Fares: Round-trips, but includes one-way tickets if no return is purchased.

Breakout of trip types: one-way, 39% ($277); round-trip, 61% ($461).

Fare calculations by BTS

*Based on a sample of approximately 10% of tickets sold.

Total ticket value: The price charged by airlines at time of ticket purchase.

Included: All fees and charges levied by an air carrier required for the passenger to board the aircraft. Also, additional taxes and fees levied by an outside entity at time of ticket purchase.

Not included: Fees for optional services, such as baggage fees, seat upgrades, and selecting an assigned seat on the aircraft.

Line chart showing U.S. First Quarter Domestic Average Fare for 1995 through 2023

Inflation-Adjusted Average Air Fares

First Quarter 2023 fare ($382):

Compared to all first quarters: Down 37.0% from the highest 1Q fare, $606 in 1999.

Compared to all quarters: Down 37.0% from the highest fare for any quarter, $606 in 1Q 1999.

Start of BTS records: Down 35.5% from 1Q 1995 ($592).

Recent high: Down 11.0% from 4Q 2018 ($429).

Recent low: Up 34.7% from 3Q 2020 ($283).

All-time low: Up 34.7% from the previous low 3Q 2020 ($283).

All-time first quarter low: Up 28.4% from the previous low 1Q 2021 ($297).

Other Revenue: In recent years, airlines have increasingly obtained additional revenue from passenger fees, as well as from other sources. U.S. passenger airlines collected 74.2% of total operating revenue of $39.2 billion from passenger fares during the first three months of 2023, down from 88.5% in 1990.

Bar chart showing U.S. Average Domestic Quarterly Fares for 4Q2019 through 1Q2023

Unadjusted Average Air Fares

First Quarter 2023 fare ($382):

Trend: Down 3.1% from 4Q 2022 ($394).

Compared to all first quarters: Down 2.2% from the highest 1Q fare, $390 in 2015.

Compared to all quarters: Down 5.2% from the highest fare for any quarter, $402 in 2Q 2014.

Start of BTS records: Up 28.5% from 1Q 1995 ($297) (compared to 99.3% consumer price increase).

Recent low: Up 55.9% from 3Q 2020 ($245).

Recent high: Down 3.9% from 2Q 2022 ($397).

All-time low: Up 55.9% from 3Q 2020 ($245).

All-time first-quarter low: Up 46.6% from 1Q 2021 ($260).

Fares by Airport

Bar chart showing fares by airport group based on number of originating domestic passengers in 1Q 2023

Fares by airport group:

Highest: 52 airports with 100,000-499,999K originating passengers ($392)

Lowest: 1 airport with 50,000-99,999K originating passengers ($143)

Additional data: see Top 100 Airports or All Airports. Second Quarter 2023 average fare data will be released October 17, 2023.

Standard error: Results for average fares are based on the BTS Origin & Destination Survey, a 10% sample of airline tickets used during the quarter. Averages for airports with smaller samples may be less reliable. For Q1 2023 results based on all itinerary fares, the standard error is 0.32 and the median fare is $307.43. The 90% confidence interval ranges from $380.99 to $382.03. For results based on round-trip fares, the standard error is .42 and the median fare is $390.70. The 90% confidence interval ranges from $460.01 to $461.39. For results based on one-way fares, the standard error is .38 and the median fare is $222.37. The 90% confidence interval ranges from $276.20 to $277.46.