The number of people traveling by plane this year is decreasing, but with air ticket prices remaining high and continuing to rise, airline executives say that this situation does not worry them.

The number of people passing through security checks at U.S. airports is expected to see its first annual decline since 2020. Major U.S. airlines have stated that achieving higher ticket prices is more important than filling the planes to capacity or transporting a record number of passengers.

Nate Piper, Chief Commercial Officer of American Airlines ( Nat Pieper ), said during the company's financial report conference call on Thursday: "We are actively prioritizing yield over occupancy rates, and we are really pleased to see that. This aligns perfectly with our ongoing investments in premiumization."

American Airlines' passenger load factor – a measure of how full a flight is – dropped to 83.4% in the third quarter, lower than the 86% in the same period of 2025.

Ticket prices continue to rise.

Due to airlines having to deal with soaring jet fuel prices – which are their largest expense after labor costs – they are passing on more of these costs to consumers, resulting in a significant increase in air ticket prices.

According to the latest inflation data, air ticket prices increased by more than 22% year-on-year in September. The ticket price tracking agency Hopper indicates that air ticket prices during this year's holiday season are expected to reach new highs in many years.

For example, Southwest Airlines' average ticket price in the third quarter was $231.69, which is nearly $50 more than a year ago. This does not include the additional fees incurred by Southwest Airlines, such as baggage handling charges or extra fees for seats near the front of the cabin.

However, the number of paid passengers of this company decreased by 3.2% year-on-year to approximately 33.5 million people.

Nevertheless, both ticket prices and the number of passengers exceeded Southwest Airlines' expectations.

Bob Jordan, CEO of Southwest Airlines ( Bob Jordan ), said during a financial report conference call on Thursday: "Passenger ticket prices are about $3 higher than our forecasts, and more importantly, the number of passengers also exceeded our expectations."

Data from the US Transportation Security Administration ( TSA ) shows that since April – when airlines began to seriously warn that soaring jet fuel prices would impact profits – as of Thursday, the number of people passing through airport security checkpoints had decreased by about 9.3 million compared to the same period in 2025. Although this represents a year-on-year decrease of less than 2%, it comes after years of growth.

Data from the U.S. Energy Information Administration shows that the spot jet fuel price along the Gulf Coast of the United States has reached $4.63 per gallon, more than doubling compared to the same period last year. Faced with the sharp rise in fuel prices, airlines have been trying their best to recoup these costs.

Even despite some declines, airline executives stated during the financial report conference call that overall travel demand remains strong, especially for high-profit premium seats such as business class.

Not all airlines are experiencing a decline. United Airlines transported 2.4% more passengers in the third quarter than a year ago and reported a 16% increase in per-unit revenue, the largest increase since the pandemic.

Scott Kirby, CEO of United Airlines ( Scott Kirby ), said during the company's financial report conference call on Wednesday: "I am surprised by the industry's ability to improve profitability this year and pass on most of the increase in fuel prices. Therefore, airlines may continue to focus on profitability at the expense of passenger load factors, and that alone could enable us to achieve double-digit profit margins next year."

Profit under pressure

Most airlines expect fuel costs to continue to erode profits, but executives say they are confident in their ability to set prices.

For example, United Airlines stated that it expects the average fuel cost in the fourth quarter to be $4.80 per gallon, which is higher than the average of $3.90 in the third quarter.

American Airlines, United Airlines, Delta Air Lines, and Southwest Airlines all lowered their profit forecasts for 2026 when releasing their financial reports this month. Among them, American Airlines is the only of these four companies that expects to incur a loss this year.

American Airlines and other companies have also scaled back their growth plans, or warned that the industry may slow down its goal of expanding capacity, which could keep ticket prices high. A reduction in capacity will make available seats more scarce, and if demand remains unchanged, prices may rise further.

These airlines stated that demand is particularly strong for premium seats, which typically cost hundreds or even thousands of dollars more than economy class fares.

Smaller airlines that will announce their financial results in the coming weeks, including Frontier Airlines ( Frontier Airlines ) and Loyal Airlines ( Allegiant Air ), have traditionally relied more on customers who are more sensitive to prices. This may indicate whether such travelers are reducing their travel activities.

Another factor that may affect air travel is the closure of Spirit Airlines ( Spirit Airlines ), which ceased operations at the beginning of May.

Bank of America stated in a research report on Thursday: 'Some of its customers may have stopped flying.'