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 says. "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.”
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
And passengers are less willing to pay inflated ticket prices than they were in the summer of 2022, he says, when many of them were embarking on their first trip in years following the pandemic.
International travel still pricey
International travel is another story. 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, says Keyes. But prices still tend to run higher in peak holiday periods. To watch for low fares, you can enter your itinerary at sites such as Google Flights and Kayak and receive e-mail alerts when prices drop. You may be able to get the best fares for flights near Thanksgiving and Christmas by booking them early in the fall.
Change plans without paying fees (mostly)
If your plans change, you can rest easy knowing that the major U.S. airlines no longer charge ticket-change fees for most fare classes, although you may be charged for same-day requests and some international flights. Basic economy tickets are typically not refundable or changeable.
Note: This item first appeared in Kiplinger's Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related Content
-
USPS Is Raising Prices for Holiday Shipping: Dates and Increases You Need to KnowWhat the USPS's $16 price hike means for your wallet and your small business.
-
July CPI Report Ignites a Risk-On Rally: Stock Market TodayMarket participants price out worst-case scenarios for tariffs and inflation and will now turn their attention to employment and growth.
-
Think Twice Before Co-Signing or Guaranteeing a Lease for Your KidsIf you co-sign or guarantee a lease for your kids, make sure you understand the risks.
-
How to Guard Against the New Generation of Fraud and Identity TheftIdentity Theft Fraud and identity theft are getting more sophisticated and harder to spot. Stay ahead of the scammers with our advice.
-
12 Ways to Protect Yourself From Fraud and ScamsIdentity Theft Think you can spot the telltale signs of frauds and scams? Follow these 12 tips to stay safe from evolving threats and prevent others from falling victim.
-
Watch Out for These Travel Scams This SummerIdentity Theft These travel scams are easy to fall for and could wreck your summer. Take a moment to read up on the warning signs and simple ways to protect yourself.
-
You Need to Have This Financial Talk With Your SpouseWomen are poised to inherit significant wealth from their husbands. Here's how they can prepare for it.
-
Three Ways to Find Deals in Your Investments This YearLooking for ways to save because of tariffs? Don't forget to look for deals in your investments. Here are three expert tips for making a little extra this year.
-
Surprising Ways to Find Deals on Cars Despite TariffsLooking for a new car? Tariffs will make good deals harder to find, so use these expert tricks to get a lower purchase price and keep long-term costs down.
-
Don't Miss Out on These Four Credit Card BenefitsCredit card benefits aren't always limited to cash back, points and miles. Check whether your existing card offers these valuable extras — or switch to one that does.
