Air Fares on the Decline?

Sky-high ticket prices have been a theme of air travel during its big comeback following the COVID-19 pandemic. But now, that finally may be changing, bringing some relief for travelers.

Prices falling?: Several U.S. airlines have revealed that average ticket prices for flights are declining to levels below projections.

• U.S. air fares in June declined over 8 percent compared to a month earlier, according to the U.S. Bureau of Labor Statistics, the largest decline in nearly a year and the second largest since the start of the pandemic.
• Alaska Airlines, American Airlines and Southwest Airlines are among several U.S. carriers that recently revealed a decline in domestic air fares, with each adjusting their future forecasts for slower revenue growth.
• Ticket prices are mirroring inflation trends, with the U.S. consumer price index rising at a slower-than-expected 0.2 percent in June, according to the U.S. Bureau of Economic Analysis.
• International air fares are heading in the opposite direction, however: up 8 percent year-over-year and 23 percent higher than 2019. Delta Air Lines, for example, reported a 61 percent increase in international revenue from 2022.

Strong demand rolls on: Despite dropping ticket prices and fears of a looming economic recession, demand for air travel is showing no signs of slowing down, according to industry leaders.

• TSA made history during the Fourth of July travel period when it screened nearly 2.9 million passengers na