Chart: Flying has gotten pretty affordable
The airfare component of the consumer price index fell by 8% month-on-month in June, and a whopping 19% year-on-year.
Why it matters: The massive spike in airfares that we saw in the spring of 2022 really does seem to have been transitory.
- As a percentage of income, airfares were only ever cheaper than this after the pandemic forced everyone to stay at home.
- In terms of the number of hours the average American needs to work in order to be able to afford a plane ticket, prices are roughly half where they were 10 years ago.
The bottom line: It might be expensive to fly to Europe right now. But broadly speaking, flights are more affordable than ever.