U.S. domestic air fares rise in first quarter as DOT expands ticket sampling
A change in federal ticket collection methodology is shaping the latest snapshot of U.S. airline pricing in early 2026. Average domestic air fare reaches $428 in the first quarter, reflecting a 4.7% increase from the inflation-adjusted $409 recorded in the fourth quarter of 2025.
Highlights
- Average U.S. domestic air fare reached $428 in the first quarter of 2026, using new DOT sampling covering 40% of passenger tickets.
- One-way tickets made up 45% of itineraries at an average fare of $305, while round-trips accounted for 55% at $522 per ticket.
- Passenger fares contributed 71.8% of U.S. airlines' $45.9 billion operating revenue in Q1 2026, reflecting a continued shift toward ancillary revenue streams.
Fare data and sampling changes
As reported by the Bureau of Transportation Statistics, the U.S. Department of Transportation shifts to a new passenger ticket collection system in the third quarter of 2025 and launches the Origin-Destination Survey of Airline Passengers, or OD40.Before the third quarter of 2025, ticket sampling is conducted on a 10% basis. Beginning July 1, 2025, the collection changes to a 40% basis covering all U.S. air carriers that operate scheduled passenger service. Domestic average fares in the current report and data tables are based on the 40% sampling, while fares before the third quarter of 2025 remain based on the 10% method.
The first-quarter 2026 average U.S. domestic air fare stands at $428. The report defines itinerary fares mainly as round-trips, but it also includes one-way tickets when no return is purchased.
By trip type, one-way tickets account for 45% of itineraries with an average fare of $305, while round-trip tickets represent 55% with an average fare of $522.
Airline revenue mix and upcoming release
Total ticket value includes the price charged by airlines at the time of purchase, along with all required carrier fees and outside taxes and charges needed for a passenger to board the aircraft. It excludes optional service charges such as baggage fees, seat upgrades and assigned seat selection.The figures also highlight how airline revenue continues to diversify beyond base fares. U.S. passenger airlines collect 71.8% of total operating revenue of $45.9 billion from passenger fares during the first three months of 2026, down from 88.5% in 1990.
That shift suggests ancillary fees and other non-ticket sources remain an important part of airline business models even as headline fares move higher. The next press release covering the second quarter of 2026 is planned for October 15, 2026.
In our earlier article on the U.S. current-account deficit in Q1 2026, we noted that the gap widened to $226.8 billion as the primary income balance swung from a surplus to a deficit. We also pointed out that while exports and income received increased, faster growth in imports and income paid drove the wider shortfall, alongside an updated view of the U.S. net international investment position remaining deeply negative.
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