Airfares fell 6.4% in January compared to the previous year, the Labor Department reported in its monthly consumer price index report. BUT it may not last long.
January is typically a slower month for travel. Domestic travel usually increases during the winter (February) and spring (March/April) school holidays.
However, airlines are forecasting robust demand this year, even in the domestic market, which has faced more competition from international destinations that reopened after the pandemic. This trend could lead to rising fares.
There is also a supply issue with flights. There is a delay in the delivery of new aircraft that is expected to persist for some time as demand for flights is above what it was in 2019, before the pandemic.
Global air traffic reached 94% of its pre-pandemic level in 2023, according to the International Air Transport Association.
The flight tracker Hopper said it expects domestic fares to average $276 in February and rise to $302 in May, an increase of more than 9% from the February forecast.
When to Buy Airline Tickets?
Finding the best flight deals is almost an art, but it also involves a bit of science – or at least economics. There are only two definitive rules: flights open for booking about a year in advance, and airfare changes frequently during that year. Therefore, as a general rule, it is advisable to book airline tickets well in advance, as prices rise sharply in the days leading up to the flight, taking advantage of last-minute travelers who have no choice but to pay.
But there are many variables that impact the dynamic patterns of airfare pricing, including the destination and the time of year. In some cases, you can book just a few weeks in advance, while in others, it’s better to book months in advance (like a trip during a major holiday).
According to a 2023 study by CheapAir.com, on average, the best time to buy airline tickets for a domestic trip is between 164 and 46 days before departure. But according to the 2024 Air Travel Hacks report from Expedia, the ideal point is 28 days before your domestic flight.
For international flights, Expedia states that the ideal time to purchase a ticket is around 60 days before departure.
And, unfortunately, there aren’t many deals for summer flights, as it is traditionally one of the most popular times of the year to travel. In an ideal scenario, you’ll want to book flights for summer travel as soon as possible, preferably at least six months in advance.
Source: CNBC and Travel&Leisure