Air travelers see higher prices despite lower oil costs
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.
RELATED STORY | US airlines lost close to $1 billion last quarter as Iran war sends costs higher
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