Airline Ticket Prices Are Coming Down to Earth
Domestic airline prices are on the decline in 2023, finally retreating after spiking just a year ago. International fares are still high.
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
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.
-
How to Help Your Kids Without Ruining Your Retirement
Here are some general considerations to ensure the gift of assets to your kids will not negatively affect your financial future.
By Mario Hernandez Published
-
AI to Power the Next Generation of Robots
The Kiplinger Letter There's increasing buzz that the tech behind ChatGPT will make future industrial and humanoid robots far more capable.
By John Miley Published
-
Your High-Yield Savings Account Is About to Look Less Appealing
High-yield savings accounts are about to pull less of a punch. Here's a look at what to do with your savings once interest rates drop.
By Kim Clark Published
-
Ease on Down the Road to Retirement
Want to keep working, just not as hard? A phased retirement may just be the answer.
By Kimberly Lankford Published
-
You Should Be Investing in a 529 Now for Your Kids' or Grandkids' Tuition
Learn how to maximize investing in a 529, a state-sponsored college education savings account for qualifying educational expenses.
By Emma Patch Published
-
Retirees are Getting Into Camping — Here's How You Can, Too
A guide to camping for retirees, as older Americans are increasingly trying out the unique time outdoors.
By Yvette C. Hammett Published
-
How Inflation, Deflation and Other 'Flations' Impact Your Stock Portfolio
There are five different types of "flations" that not only impact the economy, but also your investment returns. Here's how to adjust your portfolio for each one.
By Kim Clark Published
-
How to Help Your Kids With Finances When They Move Back Home
For millions of older parents, the nest is as crowded as ever.
By Ella Vincent Published
-
Is Identity Theft Protection Worth It?
Should you consider identity theft protection? Monitoring services can help you spot red flags quickly, but they won’t stop criminals from targeting you.
By Sarah Brady Published
-
What's Happening with Frequent Fliers in 2024?
Bargain airfares are back, but use your frequent-flier miles before they lose value.
By Sandra Block Published