Major U.S. airlines are deliberately flying with empty seats rather than cutting fares to fill them, as soaring jet fuel costs push ticket prices to record highs. The shift, reported across third-quarter earnings this week, means travelers in the United States and Canada face the most expensive holiday fares in years, with little relief expected soon.

Why are airlines willing to fly with empty planes?

Jet fuel prices have jumped roughly 90% since the U.S.-Israeli war on Iran began in February, squeezing profits even as carriers post record revenue. American Airlines' fuel bill alone rose nearly 70% in the third quarter, adding $1.9 billion in costs. Delta expects its annual fuel bill to be $6 billion above last year's.

Read also U.S. airlines prioritize higher fares over filling every seat

Rather than discount tickets to fill cabins, executives at Delta, United, American, Southwest and Alaska Air say they are protecting margins. American's load factor — a measure of how full planes fly — fell to 83.4% in the third quarter from 86% a year earlier. "We're actively prioritizing yield versus load factor," American's chief commercial officer, Nat Pieper, said on the company's earnings call, according to CNBC.

How much are fares rising?

U.S. airfares rose nearly 23% year-on-year on average in the seven months through September, according to Labor Department data, far outpacing the 3.6% increase in overall consumer prices. It marked the tenth straight monthly rise in the government's airfare index, which hit an all-time high.

  • Southwest's average third-quarter fare reached $231.69, up about 27% from a year earlier, before fees.
  • Delta's premium seating revenue rose 18% even though premium seats grew only 6%.
  • JetBlue initiated a $10 one-way domestic fare increase this week, following a United-led move that Southwest matched, according to J.P. Morgan.

What happens next?

The strategy faces a test in 2027. Six major U.S. airlines plan to grow domestic capacity 3.8% in the first quarter of 2027, up sharply from 0.2% growth in the third quarter, according to Airlines for America data cited by Reuters. More seats could intensify competition for passengers just as fuel prices are expected to stay high.

"If fuel stays elevated, we have to continue to push yield up so that we can make a bit of money," American CFO Devon May told Reuters. Delta CEO Ed Bastian has said carriers may need to curb flight growth further next year, and United's Scott Kirby has warned of more structural change ahead.

FAQ

Are airlines really flying with empty seats on purpose?

Yes. Carriers say they would rather protect fares and margins than discount tickets to fill every seat, and several reported lower load factors alongside higher revenue.

Will airfares keep rising through the holidays?

Fare tracker Hopper expects this holiday season to bring the most expensive ticket prices in years, and airlines continue to seek increases, though planned capacity growth in 2027 could ease pressure.