Increased Demand The flight shortage, of course, drives up prices. But increased demand for air travel compounds the problem. More people are shopping for fewer flights, which means airlines can get away with charging more. For the first time since 2020, there is a population ready, eager and able to travel.

In 2026, domestic airfares remain high due to a combination of volatile jet fuel prices, staffing shortages, and capacity constraints. Fuel typically accounts for 30% to 40% of an airline's operating expenses, so fluctuations in global oil prices are passed directly to consumers. Furthermore, a persistent shortage of pilots and maintenance technicians has forced airlines to reduce the frequency of flights on many routes, leading to a "supply and demand" imbalance where fewer available seats command higher prices. In specific markets like India, recent operational crises (such as the IndiGo disruptions in late 2025) have created residual capacity shocks that are expected to keep prices elevated through the 2026 summer schedule. Additionally, the rise of "unbundled" pricing means that while base fares might look lower, the total cost after adding bags, seat selection, and taxes often exceeds historical averages. Global inflation has also pushed up the cost of everything from airport landing fees to onboard catering, making the "cheap domestic hop" increasingly a thing of the past.