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A 10% longer flight costs about 3% more, so fares rise far more slowly than distance

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A 10% longer flight costs about 3% more, so fares rise far more slowly than distance
Distance-fare scatter: route-level average fare vs distance, single-quarter snapshot of up to 500 routes, dot size proportional to passengers; headline is the log-log slope of the plotted routes (the full 2020-25 route panel runs flatter)
Data through 2024 Q3
airtraffickonomics.com

Each dot is a route, sized by its passengers, and the line is the fit to the dots. Among short and medium routes, fares at a given distance still differ several-fold.

What this shows: The chart plots Routes and Log-log fit to the plotted routes on a vertical axis of Average fare ($).

Conditions and method

Status: descriptive (a pattern in the data, not a causal estimate).

On the full 2020 to 2025 route-quarter panel the distance elasticity is 0.23 in both of its eras (2020 and 2021, and 2022 on), flatter than the 0.33 on the plotted routes. The panel starts in 2020, so these two eras compare the pandemic years with the recovery, not the years before and after COVID.

How these numbers are made

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