What’s happened.

New figures from the Airlines Reporting Corporation, the body that settles airline ticket sales made through travel agencies in the US, show the squeeze clearly. US agencies sold 25.7 million tickets between July and September, only 2% more than a year earlier, but the value of those sales reached $10.2 billion, up 18%. In other words, almost all the growth is price, not people. Travel Agent Central reported the ARC data, and the average domestic round-trip fare settled through ARC was $669 in September, 7% higher than August. Economy fares are up 21% from 2025, while premium cabin fares are up 14% — the cheap seats are rising fastest.

As OpenJaw notes, this is the same increase Canadian airline bosses have been warning about. WestJet chief executive Alexis von Hoensbroech said in June that the airline would try not to raise fares quickly but could not avoid increases altogether: “you’re either passing your costs on, or you’re out of business.” Last week at the IATA Aviation Day Canada conference he described “razor-thin margins” and called for a national aviation strategy to deal with rising fuel costs. Booking platform Hopper expects US travellers to face the highest holiday airfares in ten years, and fare tracker Kayak shows Canadian fares climbing against 2025, especially on international routes.

What it means for your business.

If you sell rooms, lift tickets or tours to American or overseas guests, assume they will arrive having already paid a fifth more to get here. That money comes out of the rest of their trip, so the guest who still books will be hunting for inclusions rather than a lower nightly rate. Build 2027 packages that bundle meals, activities or transfers at a visible saving, and push harder at drive-market and domestic guests who do not pay a fare at all. Set that mix before you commit next season's advertising budget.

Next step: Rework your 2027 rate sheet into bundled packages before you lock next season's media spend.

Explore this opportunity for your business

Sources & context.

Reported developments are separated from MKTGSpace’s suggested commercial next steps. Reconfirm current conditions before acting.

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