Airline Bottlenecks Leave Passengers Paying More

U.S. airfares jumped 22 percent in September, according to federal data, as airlines faced higher costs, fewer low-cost competitors and shortages of aircraft parts and engines. The average round-trip Thanksgiving flight within the United States cost about $389, while a similar Christmas flight averaged $452. Passengers know who sets the terms: airlines say prices may stay high even if fuel costs ease.

Who Pays for the Squeeze

Fuel costs are one piece of the bill. Tensions in the Middle East pushed oil prices higher, and jet fuel prices nearly doubled in March after the war with Iran began. They fell in the spring, then climbed steadily from July; on Oct. 24, jet fuel prices were about as high as since the United States and Israel began attacking Iran on Feb. 28. Fuel typically accounts for 25 to 30 percent of an airline’s operating costs, behind wages and employee benefits.

Competition has thinned, too. Spirit Airlines, which once offered tickets for less than $100, shut down this spring, while other low-cost carriers are struggling. Affluent travelers buying high-end seats haven’t been deterred by higher prices. The squeeze doesn’t land evenly.

“It’s expensive to fly airplanes,” United Airlines chief executive Scott Kirby told Wall Street analysts on a conference call Wednesday. He said most companies in the industry would lose money this year, so fares would have to remain high. “I think the tide has to rise for everyone or those airlines simply won’t exist.” That’s the industry’s explanation: passengers should expect expensive tickets because companies say they need them.

Planes Turned Into Parts

Parts shortages have pushed companies to dismantle relatively young aircraft for components. An Airbus A320neo built in Mobile, Alabama, rolled off the factory line in July 2022, painted yellow for Spirit Airlines. In May 2026, buyers stripped it for parts worth millions, then crushed it at a facility outside Phoenix. They sought everything from landing gear to antennae, even after removing the engines.

Bill Thompson, vice president who leads aircraft and engine acquisition for the Americas at EirTrade Aviation, said he had never before purchased an aircraft less than five years from its manufacture date. EirTrade bought that A320neo and a similarly aged aircraft, paying “single-digit” millions for each and expecting to profit from selling more than 1,000 parts removed before they were crushed. “I don’t know if you’re going to sell the coffee makers but you never know. Sometimes you do,” Thompson said.

IBA Group reported that 21 newest-generation aircraft were dismantled from June 2025 through August 2026. The scrapped planes averaged 6.4 years old; IBA compared that with an average retirement age of 21.7 years for narrow-body aircraft. Buyers and owners make the calculations. Passengers and airline workers remain inside a system where scarcity sets prices for parts, engines and seats.

The Engine Market’s Price Tag

Long waits and rising jet-engine costs drive many early retirements. Newer engines that burn hotter and use less fuel have required maintenance earlier than airlines expected, backing up repair facilities run by GE Aerospace, RTX unit Pratt & Whitney and smaller independent companies. Airlines and leasing firms are searching for spare parts and engines.

An engine fan blade can cost $50,000 or more than $100,000 for larger jets, Simon Goodson, CEO of AerFin, said. Some engines powering Airbus A320neo aircraft have 20 blades; an engine disc can cost between $1 million and $2 million. Pratt & Whitney issued a recall in 2023 after finding contaminated powdered metal used to make some parts. The recall grounded hundreds of Airbus planes worldwide and backed up repair shops.

Airlines have taken engines off retired aircraft to keep other planes flying while repairs continue. “So you’re just playing Legos and moving engines on and off aircraft,” said Mike Stengel, a partner at aerospace consulting firm AeroDynamic Advisory. IBA data put monthly rent for one popular engine at about $160,000 to $180,000. A competing engine for the A320neo family, made by CFM International, rents for a similar $130,000 to $180,000 a month.

The business of selling access keeps moving at the premium end. On Oct. 24, 2026, AirTripMaker announced a Business Class Flight Routes Guide covering international routes, fares and cabin information. Its listed carriers include United Airlines, American Airlines, Emirates and other global airlines. The platform advises travelers to verify schedules, cabin availability and final ticket prices. The guide can help people compare options, but it can’t change the arithmetic of scarce aircraft, expensive engines and fares airlines say must remain high.