Holiday travel costs stay high

Holiday travelers will face higher costs this year as war-driven fuel prices keep airfare and gas at elevated levels.

The national average for a gallon of regular gasoline was $4.27 on October 22. AAA reported that figure is down six cents from the previous week, but the drop is temporary. The price increase stems from a seasonal switch to cheaper winter-blend gasoline. Last year, the average price at the pump was just over $3.00. This year, prices have climbed above $4.00.

Crude oil prices have pushed past the $100 per barrel mark. Shipping traffic in the Strait of Hormuz remains disrupted, a bottleneck that continues to drive up the cost of petroleum products. October is the most expensive month for gas prices this year, following record highs in August and September.

Airlines are passing these energy costs directly to passengers. The U.S. Bureau of Transportation Statistics shows the average domestic airfare rose to $445 in the second quarter of 2026. That is a 2% increase from the inflation-adjusted fare of $436 in the first quarter. Industry analysts expect this trend to continue through the holidays.

Mark Jenkins, spokesman for AAA, said fuel prices are only one factor in travel decisions. He noted that driving remains the dominant mode for holiday trips. He stated, "Generally, driving remains the dominant mode of transportation for holiday travel." He added that logistics often matter more than price. A family of four traveling nearby may drive to save money, while a solo traveler crossing the country may fly.

JetBlue Airways is the largest carrier at Fort Lauderdale-Hollywood International Airport. The airline reported an average fuel price of $3.91 per gallon in the third quarter of 2026. That is 57% higher than the same period last year. JetBlue expects its average fuel price to reach $4.64 per gallon in the fourth quarter.

Jeffrey Granell, managing director of EisnerAmper, said JetBlue needs higher prices to generate cash flow for debt service. He warned that aggressive price hikes could slow demand. Henry Harteveldt of Atmosphere Research Group said JetBlue is no longer a discount airline. He noted that JetBlue fares can be higher than those of American, Delta, and United.

Frontier Airlines has raised fares by 71% to cover rising fuel bills. The Denver-based carrier reported an 18% increase in passenger count last quarter, adding 1.5 million travelers. Despite the price hikes, booking levels remained steady. Younger carriers like Allegiant and Avelo are also raising fees to offset fuel costs.

Last year, 81.8 million Americans traveled 50 miles or more for Thanksgiving. An estimated 73 million of those travelers drove. In Florida, more than 4.25 million residents used roadways, pushing gas prices up by 20 cents before the holiday. This year, AAA will release its Thanksgiving travel forecast in mid-November.

Amtrak saw a 5% increase in ridership in March compared to the same month in 2025. The rail network is ending a program that allows travelers to share first-class roomettes for free. That offer is valid for travel between November 1, 2026, and January 31, 2027. Amtrak did not respond to a request for comment on holiday fares.