Travelers Can Expect Lower Airfare Prices for the Holidays
Travelers heading home for the holidays will finally have some respite from ultra-expensive airfares this year as prices have plummeted, new data shows. The cost of a round-trip domestic flight this Thanksgiving is $248, down 9 percent from last year and 10 percent from 2019, according to travel app Hopper.
Decreased Airfare Prices for Thanksgiving and Christmas
For Christmas, Americans face paying $313 for a domestic flight on average, a fall of 18 percent from last year and 15 percent below 2019 prices.
Inflation figures from the US Bureau of Labor Statistics released today observed a similar trend. The cost of airfares fell by 13.2 percent between October 2022 and October 2023, the data shows.
The decline suggests that the post-pandemic travel boom – which saw prices shoot up to record highs – is finally beginning to cool.
Kyle Potter, executive editor of travel blog Thrifty Traveler, told the New York Times: ‘In a lot of cases, we’re seeing some of the lowest fares that we’ve seen really since travel started coming back after the drop-off in 2020.’
Typically, airlines lower their fares when demand is slowing. But research by Airlines America – cited by the NYT – shows nearly 30 million passengers are set to travel by flight this Thanksgiving.
It represents a 9 percent increase from last year and 6 percent above pre-pandemic levels in 2019.
But demand across the calendar year outside of holidays is falling, the NYT reported. While the largest US airlines appear to have continued thriving, smaller carriers have reported disappointing financial results between July and September.
For example, JetBlue Airways lost $153 million in the third financial quarter. In the same period last year, it made $57 million in profit.
JetBlue’s president and chief operating officer Joanna Geraghty said in an accompanying statement that ‘industry capacity is outpacing domestic demand during off-peak travel periods.’
The airline said average fares dropped more than 12 percent in the third quarter when compared to the same period in 2022.
CEO Robert Jordan told CNBC at the time: ‘The whole sector is under pressure obviously. Costs are rising, and a lot of that is labor cost.’
At the same time, competition among airlines is mounting which is also helping to drive down fares. Aviation data firm Cirium found that airlines have scheduled a record 259.8 million seats for domestic flights in the final quarter of 2023.
It marks an 8 percent increase on the number of seats available last year.
According to the Department of Transportation, customer complaints to airlines nearly doubled in the first three months of the year compared to the same period in 2022. The Department received 24,965 complaints about airline service, up 88 percent from last year.
Frontier Airlines, Spirit Airlines, and Southwest Airlines had the highest proportion of complaints per the number of passengers, according to the data.
In conclusion, travelers can expect lower airfare prices for the upcoming holidays. The cost of domestic flights has significantly decreased compared to previous years, providing some relief for holiday travelers. However, outside of holiday periods, demand for air travel is falling, leading to financial challenges for smaller carriers. Despite these challenges, competition among airlines is increasing, resulting in more seats available and further driving down fares. It remains to be seen how the industry will navigate these changes in the coming months.
Quote from Helena Kelly, Assistant Consumer Editor for Dailymail.Com:
“In a lot of cases, we’re seeing some of the lowest fares that we’ve seen really since travel started coming back after the drop-off in 2020.” – Helena Kelly, Assistant Consumer Editor for Dailymail.Com
Author’s Conclusion:
The decline in airfare prices for the holidays indicates a cooling of the post-pandemic travel boom. While demand during holiday periods remains high, off-peak travel periods are experiencing a decrease in demand. Smaller carriers are facing financial challenges due to industry capacity outpacing domestic demand. However, increased competition among airlines and a record number of available seats for domestic flights are contributing to lower fares. It is important to monitor how the industry adapts to these changes in the future.” – Helena Kelly, Assistant Consumer Editor for Dailymail.Com
George Barham, an accomplished journalist and avid gambling enthusiast, serves as the esteemed Editor-in-Chief at fly-to-australia.com, Australia’s leading source for comprehensive gambling news and insights. With an unwavering passion for both the written word and the ever-evolving world of betting and gaming, George brings a wealth of knowledge and expertise to the helm of our editorial team.
