Published 31 August 2023
After soaring in 2022, prices for domestic airline tickets are on the descent. In June 2023, airfares had dropped by 8.1% from May and by 18.9% over the previous 12 months, according to the June Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics.
Booming supply and changing demand are the two key drivers of the decrease, says Scott Keyes, founder of Going, a website that provides airfare alerts and information.
“While 2022 was characterized by pilot and plane shortages, airlines have been making steady progress on both fronts this year,” Keyes explains. “More capacity is getting added to the flight system every month, and because aircraft have gotten significantly larger on average over the past decade, the number of available seats is already higher today than pre-pandemic.”
Passenger Behavior Changes
Passengers are less willing to pay inflated ticket prices than they were in the summer of 2022, says Keyes, noting that many travelers began undertaking their first trips in years following the pandemic.
International Travel Costs
International travel remains notably pricier. Over the summer, the average airfare to Europe was nearly $1,200 per ticket, the highest price in the past six years, according to travel-booking site Hopper. Flights to Asia had an average ticket price of more than $1,800. To save money, Hopper advises flying midweek, vacationing in the fall shoulder season, and traveling to more off-the-beaten-path destinations such as Reykjavik or Dublin.
Planning Holiday Travel
It’s likely that domestic airfares will continue to sink through the rest of 2023, according to Keyes. However, prices still tend to run higher during peak holiday periods. To track low fares, travelers can enter their itinerary in flight search platforms and monitor pricing alerts closely. Booking early in the fall may yield the best fares for flights near Thanksgiving and Christmas.
Changing Travel Plans
If your plans change, there’s good news: major U.S. airlines no longer charge ticket-change fees for most fare classes, although charges may apply for same-day requests and certain international flights. Nonetheless, basic economy tickets are typically not refundable or changeable.
By understanding these evolving trends and tips, travelers can navigate the complexities of flight pricing more effectively and enjoy cost-effective travel solutions.
