Airfares jump as airlines shrink flight schedules

Airfares are climbing again, signaling the end of bargain tickets for many travelers.

Federal data shows prices rose 4% in July from June, the first increase since January, and fares were also higher than a year earlier.

Airlines had previously cut prices after overestimating demand, leaving too many empty seats. 

But with bookings rebounding and more passengers passing through US airports this summer, carriers are now shrinking schedules to regain pricing power and protect profits. 

Travelers are already feeling the pinch: two Miami-to-Los Angeles round-trip economy tickets that cost $606 last year jumped to over $1,500 now.

Analysts warn that airlines may not sustain higher fares if demand slows or carriers expand capacity too quickly.