- U.S. airline fares fell 1.9% M/M in May to mark the second consecutive month of a sharp drop.
- The average fare during the month was 6.6% lower than the level from a year ago on an unadjusted basis.
- The airline fare price index can be influenced significantly by increased competition in just a few key markets.
- The drop in fares from a year ago coincides with higher labor costs and fuel costs for most carriers.
- Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, SKYW.
- Related ETF: JETS.
- BLS CPI data