Families flying abroad for their summer holidays saw plane ticket costs surge by nearly a third in just one month in the biggest such increase on record.
Air fares soared by 30.2 per cent between June and July – the largest jump between those months since the collection of monthly data began 24 years ago.
The Office for National Statistics (ONS) said today that the increase was significantly above the 13.3 per cent rate recorded between the same months in 2024.
Experts believe the hike could have been influenced by the timing of the school summer holidays this year which may have made European flights more expensive.
This is because the collection day this year’s data overlapped with the start of school holidays for some (July 15) – while last year it was during the school term (July 9).
The annual rise in air fares, comparing July 2025 against July 2024, was 15.5 per cent – up from a 0.5 per cent annual rise in June and a 3.9 per cent annual fall in May.
Travel expert Paul Charles, chief executive of travel consultancy The PC Agency, told the Mail: ‘The inflationary spike in air fares proves just how much demand there is to travel and I see no sign of that changing.
‘The forward bookings for airlines are pretty strong, and at much higher prices than we have traditionally seen for air fares in the past. While the 30 per cent spike is unsustainable in the short-term, I do expect continuing fare increases for travel in summer 2026.
The ONS said air fares soared by 30.2% between June and July. Heathrow Airport is pictured
‘There is plenty of demand from us as consumers to travel, more demand in fact than airlines would have imagined during the pandemic. That demand will continue as many people have now become used to taking at least two trips per year, sometimes more.’
He said that with airlines ‘knowing that demand will continue’, they are able to plan for further increases of ‘at least 10 per cent’ over the next year.
Mr Charles added: ‘There will also be a limit as to how much seat capacity can be increased, due to the slow delivery of new aircraft.
‘This means that prices will stay high due to greater demand for fewer seats over time. It’s a bumper time for airlines, and airports, and I see no sign of that changing.’
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said British travellers had ‘ringfenced budgets to enjoy themselves on holiday’ and were ‘willing to shell out for expensive seats on planes’.
Nicholas Hyett, Wealth Club investment manager, accepted some of the rise in air fares was down to timing, but added: ‘Airlines have been talking about a capacity crunch for a while now and higher costs are the inevitable outcome.’
Meanwhile David Morrison, senior market analyst at Trade Nation, said economists ‘can argue that the rise in air fares may be a one-off’.
The ONS said its inflation data release today: ‘The rise in the annual rate reflected a large upward effect from airfares which rose by 30.2 per cent between June and July 2025, compared with a rise of 13.3 per cent between the same months in 2024.
‘The monthly rise in July 2025 is the largest July increase since collection of airfares changed from quarterly to monthly in 2001 and was probably influenced by the timing of school summer holidays.
‘Returning European flights were during the school term in 2024, whereas returning European flights were during the school holidays in 2025, which may have made these flights more expensive.’
Travel expert Nicky Kelvin, editor-at-large at The Points Guy, told the Mail that the ONS report ‘clearly acknowledges what many families experience – a huge spike in the cost of flights and holidays during school holidays, especially to destinations in and around Europe’.
He added: Trying to compare prices without considering school term dates will always result in a skewed picture.
‘But here’s the good news – if travellers can be flexible on when or where they travel to, there are still some fantastic deals to be found, whether through package operators or by using points and miles.’
His research found people can still find return flight prices for a one-week trip in August starting at £46 for Copenhagen; £48 for Palma; £54 for Marseille; £55 for Faro; £59 for Ibiza; £68 for Barcelona; and £80 for Antalya.
The annual rise in air fares (pictured) now stands at 15.5%, while the monthly rise is at 30.2%
Mr Kelvin continued: ‘There are also excellent deals to be had from package holiday tour operators like Jet2 or easyJet Holidays, especially when utilising those variable discount codes and for those who are flexible on the destination they travel to.
‘I always harp on about points and miles and it really is a great way to find a fantastic deal during the peak holiday season.’
He said return flights were available this month to a series of destinations with a cash outlay from as little as £1, when using British Airways Avios – including Malaga, Faro, Ibiza, Nice, Rome, Naples, Crete, Miami and even Bermuda and San Diego.
Also today, a travel expert at Skyscanner told the Mail: ‘Prices are not rising on every route, nor at the same rate – meaning there are deals to be found, especially for travellers who can stay flexible or are open to exploring off the beaten track.’
She said their research shows 76 per cent of UK travellers are open to exploring alternative destinations, while 36 per cent would consider travelling on a less popular week or day to secure better prices.
The expert continued: ‘Flexibility really is key and in fact 87 per cent of UK travellers say they’d be willing to change the date of their holiday to save money.
‘Those who can fly on less popular days of the week or during off-peak periods — such as the shoulder season either side of peak summer — often unlock the biggest savings, along with the bonus of quieter airports and less crowds.’
She suggested comparing dates, providers, departure airports and destinations to help uncover the best deals.
Zoe Harris, chief customer officer of On the Beach, said the package holiday firm had ‘significant concerns about the comparability’ of the ONS data and the ‘conclusions being drawn’.
Referencing the difference in collection date, she told the Mail: ‘Anyone familiar with airfares knows that a week’s difference at this time of year can lead to a dramatic shift in prices, driven purely by seasonal demand. In other words, the figures are not like-for-like.’
She added: ‘The numbers are likely being skewed by timing, to present them as otherwise risks undermining confidence in official statistics.
‘We are also concerned that undue focus is being placed on airfares when more persistent and pressing inflationary pressures are evident elsewhere.’
Ms Harris cited July as being the fourth consecutive month in which food and drink inflation has risen – which is the ‘real issue for households up and down the country, not temporary, school-holiday-related airfare spikes’.
She concluded: ‘Given recent criticism of the ONS’s handling of core figures and the ongoing review of its governance, this latest release raises further questions about methodological rigour and communication.
‘Consumers and businesses alike deserve clear, comparable, and transparent data, not headline figures that risk distorting the picture.’
Ryanair’s average fare rose by 21% year-on-year to £44 in the three months to the end of June
Ryanair revealed in a financial update last month that its average fare rose by 21 per cent year-on-year to €51 (£44) in the three months to the end of June.
The budget airline – which carried a record number of passengers last month – also reported better-than-expected fares for last-minute bookings.
The Irish carrier additionally said it was seeing fares rebound after it cut them by 7 per cent in its previous financial year as under-pressure consumers reined in spending.
Meanwhile easyJet said last month that it carried 25.9million passengers between April and June, up 2.2 per cent year-on-year.
The company also reported a headline pre-tax profit of £286million between those months – an improvement of £50 million compared with a year earlier.
In May, easyJet said the number of passengers it carried in the first three months of the year was 18.2million, up 8 per cent compared with a year ago.
It comes as On the Beach claimed today that last-minute summer holiday bookings have surged by an ‘unprecedented’ 93 per cent in the past week.
The firm said a further ten million Brits are considering heading abroad within the next seven days as they look to squeeze in a holiday before September.
The number of Brits booking last minute holidays leaving in less than a week has risen by almost 25 per cent on average compared to last year, according to the firm.
On The Beach’s Ms Harris told the Mail: ‘Late summer holidays are having a moment. Families deep into the school break are turning to getaways that work out cheaper than keeping kids entertained in the UK.’
She added: ‘Approximately ten million Brits are expected to book holidays departing in the next seven days, an unprecedented surge in demand this late in the season.
‘In the history of British holidays, we’ve never seen such a rush for last-minute sunshine.’
The business believes the increase in bookings is because of two main factors – late summer flight prices have fallen, and the forecast next week in Britain is for wet and windy weather.
The rise in air fares last month combined with food prices continuing to climb saw UK inflation rise by more than expected in July.
Consumer Prices Index (CPI) inflation increased to 3.8 per cent in July, from 3.6 per cent in June. Most economists had been forecasting inflation to rise to 3.7 per cent.
It means the headline rate remained at the highest level since January 2024, when it hit 4 per cent.
The ONS said transport was the biggest factor driving up overall inflation last month, particularly due to a spike in flight prices as families booked trips during the school summer holidays.
The average price of petrol rose by 2p per litre between June and July, and the average diesel price by 2.9p per litre over the period.
Prices across UK restaurants and hotels also increased last month, largely driven by a jump in overnight hotel stays booked the night before.
Food and drink inflation rose to 4.9 per cent in July, from 4.5 per cent in June.
The Bank of England is expecting CPI inflation to continue rising to a peak of 4 per cent in September, before price rises start to ease. The central bank is tasked with keeping inflation at 2 per cent.
The ONS has faced criticism in recent months due to issues facing its economic statistics – particularly related to its labour market data, with recent criticism from Bank of England and Treasury officials.
In June, a review led by Sir Robert Devereux found there were ‘deep-seated’ issues with the statistics body and called for a major overhaul.
