Airfares are falling

The phenomenon of falling airfares is a post-COVID-19 pandemic recalibration, considering so many airlines reduced schedules in 2020

Inflation has hit most of the economy, but that’s hardly the case with airfare. Not only are airfares down 6% year-over-year based on January 2024 prices, but they’re even down 15% versus a decade ago. That’s according to consumer price index data from the U.S. Bureau of Labor Statistics published in February. Some experts predict airfares to international destinations will drop even lower in 2024.

Key takeaways

• According to the American Express Global Business Travel Air Monitor 2024 report, prices on certain international routes may drop as much as 12%;
• Last year’s high traveler volume has prompted airlines to increase flight schedules: Airlines added 10% more flights between the U.S. and Central America in 2023 versus 2022. For travel from North America to Asia the increase is even 35%;
• More availability in turn can help with pricing. Heading into 2024, in theory, this should reduce overall prices.

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