PHOENIX, Aug. 30 (UPI) -- Airline fares for U.S. holiday travel are soaring and travel consumers are encountering sticker shock, industry observers say.

Record fuel prices and flight cutbacks, coupled with still-high demand, are combining to produce unprecedented hikes in ticket prices, The Arizona Republic reported Saturday. It said research shows Thanksgiving fares for Phoenix are up an average of 30 percent, or $84, from 2007 levels, while Christmas prices are up 21 percent, or $65 per person.


The newspaper said Live Search Farecast, a Microsoft-affiliated company that operates Farecast.com, is reporting the holiday fare increases are the highest it has ever seen.

"This is truly remarkable," Mike Fridgen, Farecast.com's director of product management, told the Republic, adding that a reduced supply of seats at a time of high demand is "a recipe for high fares."

Meanwhile, Don Gleason, vice president of travel for AAA Arizona, said the holiday airfare increases are at about 24 to 30 percent over last year, depending on the route.

"There will be a certain population that's going to have to swallow hard and call Mom and say, 'I'm not coming,' " he told the newspaper. "That's the reality."