Air travel is up over last year by 5% - 10%, however most airlines have only increased their capacity 1% - 3% after they decreased their capacity during the recession by 10% - 20%. This is helping airlines continue to be profitable (which is a good thing) and is why you are seeing higher airfares.
You may see little swings in the price, but don't expect to see the same low fares as you have in the past. Airlines have learned to control their capacity, keeping fares higher and offsetting their costs which continue to go up (ie. salaries, fuel, insurance, etc.).