Looking to plan a last-minute end-of-summer getaway? You’re in luck: Airline ticket fares saw their steepest drop in two decades last month.
The Bureau of Labor Statistics recorded a 5.6% drop in fare prices in July, even as U.S. consumer prices as a whole inched up 0.1%, NBC News reports. What gives? Fuel costs at a six-year-low and a Justice Department investigation into potential airline collusion that may be keeping the industry on its best behavior, for starters.
Whereas decreases in airline fares typically lag behind dropping fuel costs by six months or even a year, BestFares CEO Tom Parsons told NBC that the sustained low costs of fuels and airlines’ unprecedented profits are likely giving them the confidence to compete with budget airlines. And with the late August “Deal Zone” coming up in late August — when kids head back to school and families aren’t traveling — consumers can expect even bigger drops and better fares than usual.
The low prices are expected to last into the fall, but don’t wait too long: economists predict that the ticket price slump will be temporary.