CPI read: Airfares jump 22% in September as hot steak extends

The Consumer Price Index report for September indicated a 3.7% year-over-year increase to match the consensus expectation.

Airfares in the U.S. rose 22.4% in September compared to a year ago on an unadjusted basis, according to data compiled by the Bureau of Transportation Statistics. By comparison, airfares were up 23.4% in August, 25.5% in July, 36.5% in June, and 26.7% in May.

Airfares were up 1.2% sequentially, compared to the level in August, and have risen in eight of the last nine months. Overall, core inflation was up 2.6% year-over-year during the month, which was a faster pace than what was seen in July and August.

Airfares have jumped this year mainly because jet fuel prices spiked due to the Iran conflict, sharply increasing operating costs across the airline industry. A lower level of hedging has impacted the ability of airlines to offset the higher jet fuel costs. The loss of Spirit Airlines is also a factor on certain routes, while a higher mix of premium seating has also put upward pressure on airfares in the U.S.

Airline stocks: American Airlines (AAL), Delta Air Lines (DAL), Southwest Airlines (LUV), United Airlines (UAL), JetBlue Airways (JBLU), Alaska Air Group (ALK), Allegiant Travel (ALGT), Mesa Airlines (MESA), SkyWest (SKYW), Sun Country Airlines (SNCY), Republic Airways (RJET), and Frontier Group (ULCC).