Americans are traveling in droves this holiday season, and it turns out cheap gas is a pretty effective motivator. AAA is reporting numbers that would make any transportation analyst sit up and take notice: more than 122 million people hitting the road, the skies, or whatever mode of transport gets them to grandma's house.

The Post-Pandemic Travel Streak Continues

Gene Boehm, President and CEO of AAA Inc., appeared on CNBC's "Squawk Box" Thursday to share what's becoming a familiar story. "We're seeing records every year coming out of the pandemic," he explained. This year's 122 million travelers represents a 2% increase compared to last year's holiday season, which itself was a record.

Here's where it gets interesting: the split between driving and flying reveals a lot about consumer behavior when prices shift. A whopping 89% of holiday travelers are choosing to drive, and the reason is pretty straightforward. Gas prices have fallen to an average of $2.85 per gallon, down significantly from the $3 or $4 range we saw a year ago.

That means roughly 109 million Americans will be traveling by car during this period. AAA is bracing for impact, literally expecting to "rescue over 860,000 people on the side of the road" throughout the holiday stretch. That's a lot of dead batteries and flat tires.

Boehm also mentioned that air travel is hitting fresh records with unprecedented passenger volumes this season, though he didn't provide specific numbers during the segment.

The Great Price Reversal: Cheap Gas, Expensive Flights

While drivers are catching a break at the pump, air travelers are facing the opposite situation. According to AAA's earlier report this month, airfares have climbed 7% year-over-year to an average of nearly $900. That's a significant jump, and it's clearly influencing travel decisions.

The TSA is projecting that the busiest travel day will see about 2.86 million passengers passing through security on Sunday. That's just slightly ahead of last year's peak day at 2.85 million, but it's still a record nonetheless.

Despite higher ticket prices, airline stocks have responded positively to the strong travel volumes. Major carriers including American Airlines Group, Inc. (AAL), Southwest Airlines Company (LUV), United Airlines Holdings, Inc. (UAL), and Delta Air Lines, Inc. (DAL) all moved marginally higher on Christmas Eve.

The broader airline sector is showing strength too. The US Global Jets ETF (JETS), which tracks most American airlines, is up 8.68% this month. The fund demonstrates strong momentum across short, medium, and long-term price trends, suggesting investor confidence in the sector's trajectory.

The dynamic here is fascinating: consumers are choosing the cheaper travel option when possible, but overall travel demand is so robust that even the more expensive option is setting records. It's a testament to how strong consumer confidence has become in the post-pandemic era, and how much Americans value getting together during the holidays, regardless of the cost.