Third Quarter 2025 Average Air Fare Decreases 4.7% from Second Quarter 2025 :: Hospitality Trends

In the third quarter of 2025, the U.S. Department of Transportation (DOT) transitioned to a new collection of passenger tickets, and launched the Origin-Destination Survey of Airline Passengers (OD40) program. Prior to the third quarter (Q3) of 2025, the ticket sampling collection was performed on a 10% basis.

Beginning July 1, 2025, the ticket sampling collection changed to a 40% basis of all U.S. air carriers that operate scheduled passenger service. The Domestic Average Fares in this report and data tables are based on the 40% sampling. Fares prior to Q3 2025 will remain based on the 10% ticket sampling. Find more information about the transition to the OD40 on the BTS OD-40 page.

The average U.S. domestic air fare decreased in the third quarter of 2025 to $370, down 4.7% from the second quarter 2025 inflation-adjusted fare of $388. 

Itinerary Fares: Round-trips, but includes one-way tickets if no return is purchased.
Breakout of trip types: one-way, 45% ($266); round-trip, 55% ($451).

Fare calculations by BTS

*Based on a sample of approximately 40% of tickets sold. 

Total ticket value: The price charged by airlines at time of ticket purchase.

Included: All fees and charges levied by an air carrier required for the passenger to board the aircraft.   Also, additional taxes and fees levied by an outside entity at time of ticket purchase. 

Not included: Fees for optional services, such as baggage fees, seat upgrades, and selecting an assigned seat on the aircraft. 

Note: Q3 2025 represents the new OD40% Collection fares

Inflation-Adjusted Average Air Fares    Third Quarter 2025 fare ($370):

Compared to all third quarters: Down 41.3% from the highest 3Q fare, $630 in 2000. 

Compared to all quarters: Down 43.3% from the highest fare for any quarter, $653 in 1Q 1999.
Start of BTS records: Down 42.0% from 1Q 1995 ($637).

Recent high: Down 15.9% from 2Q 2022 ($440). 

Recent low: Up 15.5% from 1Q 2021 ($320).

All-time low: Up 21.3% from the previous low 3Q 2020 ($305).
All-time third quarter low: Up 21.3% from the previous low 3Q 2020 ($305).

Other Revenue: In recent years, airlines have increasingly obtained additional revenue from passenger fees, as well as from other sources. U.S. passenger airlines collected 73.9% of total operating revenue of $138.9 billion from passenger fares during the nine months of 2025, down from 88.5% in 1990. 

Unadjusted Average Air Fares    Third Quarter 2025 fare ($370):

Trend: Down 4.0% from 2Q 2025 ($386).
Compared to all third quarters: Down 7.3% from the highest 3Q fare, $399 in 2014.

Compared to all quarters: Down 8.0% from the highest fare for any quarter, $402 in 2Q 2014.

Start of BTS records: Up 24.6% from 1Q 1995 ($297) (compared to 111.9% consumer price increase).

Recent low: Up 42.2% from 1Q 2021 ($260).

Recent high: Down 7.0% from 4Q 2024 ($398).

All-time low: Up 51.2% from 3Q 2020 ($245).
All-time third-quarter low: Up 51.2% from 3Q 2020 ($245).

Fares by Airport

Fares by airport group:

Highest: 11 airports with 2.0 million plus originating passengers ($372)

Lowest: 12 airports with 1.0-1.49 million originating passengers ($356)