Holiday air travel costs are at a 10-year high

According to Hopper’s late-September 2026 Holiday Travel Index, air travel costs have reached a 10-year high. Domestic round-trip fares for Thanksgiving have risen 31% from 2025 to an average of $402, while Christmas fares have increased 23% to around $452.

International travel is also becoming more expensive. Travel experts expect significant price increases for popular destinations across Europe, Mexico, Central America and the Caribbean.

Ryanair CEO Michael O’Leary said Tuesday that airfares across Europe could rise by as much as 20% over the next 12 months.

Experts note that the sharp rise is due to the high jet fuel costs triggered by the Iran war.

The monthly average price of jet fuel is $4.50 per gallon. It is a 91% increase from February, when the joint US-Israel attacks on Iran began.

Not just air travel, Christmas nightly rates have jumped 18% over last year to an average of $197. Meanwhile, Thanksgiving hotel rates remain steady at $170 per night.

To mitigate the steep expenses, travelers are advised to book both Thanksgiving and Christmas travel before Halloween, as prices will only climb closer to departure dates.

Experts recommend booking Thanksgiving and Christmas trips before Halloween to avoid further price increases. Travelers should also consider avoiding peak departure dates, including Sunday, November 29, for Thanksgiving and December 18–20 for Christmas.