Airfare Insights: The Reality of Prices in the U.S.

The Current State of Airfare Prices in the U.S.

United Airlines CEO, Scott Kirby, has asserted that airfare prices need to increase by about 15-20% to align with rising fuel costs. This may be frustrating for many travelers, but long-term data suggests he may be onto something.

Kirby points out that airlines typically wait until a crisis hits before raising ticket prices, and internal politics within companies also play a role in keeping fares low. Revenue management teams often set higher prices, while marketing departments frequently run promotions, leading to a disconnect in pricing strategies.

Price Comparisons Across Decades

Looking at statistics, domestic airfare has significantly decreased compared to historical highs. For instance, a one-way ticket from New York to Los Angeles in 2025 is projected to cost around $200 (approximately 4.8 million VND), whereas in the 1960s, the same ticket soared to $278 (equivalent to about $2,725 today).

Here's a decade-by-decade breakdown of airfare prices:

• 1965: $278 (equivalent to $2,725 today)
• 1974: $330 ($2,080)
• 1985: $300 ($870)
• 1995: $250 ($500)
• 2000: $300 ($575)
• 2017: $230 ($280)
• 2025: $200 ($200)

Compared to previous years, the 2025 fare is 28% cheaper than in 2017, even though inflation during that period has been around 31% (excluding energy and food costs).

Fluctuations in the Aviation Industry

The aviation sector has undergone significant changes, especially during the 1970s and 1980s when it was heavily regulated. The price reductions following deregulation resulted in consumers paying 28% less for air travel.

Data from IATA indicates that the real cost of air travel has decreased by an average of about 1.7% per year since 1970, while global passenger traffic continues to rise. Consequently, airfare has become increasingly affordable, leading more people to choose flying as their preferred mode of travel.

Passenger Pushback

While fares may have decreased, nobody enjoys paying more for flights. Passengers are understandably resistant to the idea of rising ticket prices, especially when the flying experience seems to have declined. Although Kirby’s data is accurate, the notion of higher fares does not sit well with customers.

Conclusion

Kirby's arguments, while potentially uncomfortable, cannot overshadow the fact that current airfare remains low by historical standards. In an era of rising costs and less appealing flying experiences, passenger reactions are entirely justified.

Useful Information for Vietnamese Travelers

For those planning a trip to the U.S., especially flying from Vietnam (Ho Chi Minh City or Hanoi), it’s crucial to prepare visa information ahead of time. Travelers need to apply for a B1/B2 tourist visa, which typically takes about 1-2 months for approval. Furthermore, one-way ticket prices from Vietnam to Los Angeles can range from 15 million to 30 million VND, depending on the time of travel and airline.

It's recommended to book tickets early and to regularly check for promotions from airlines to snag the best deals.

Article referenced and edited from: Live and Let's Fly