When everything around us seems more expensive than it has been in years, travel observers say we should look at how airfares are actually getting cheaper. According to Scott Keyes, founder and chief flight expert at Going.com, airfares are actually falling sharply (as of July 2024) – and are now 24% cheaper than their peak in June 2022.
Comparing that to inflation, inflation has increased 21% since February 2020, while airfares have decreased 11%. If you want even more proof, he says airfares are 42% cheaper than they were 10 years ago (adjusted for inflation). You can choose any of those metrics, but the result is always the same: a good deal for the traveler.
“So why are flights getting cheaper? Because of competition,” claims Keyes. “Airline capacity has been growing steadily by 7-15% over the past two years, and this increased competition is putting downward pressure on prices.”
Where to find the biggest drops
Keyes’ research shows that some of the biggest price reductions are on international routes. According to the Bureau of Labor Statistics’ monthly price indexes, prices in July 2024 compared to last year are as follows:
And yes, there is a “but”
But before you rush headlong into a travel booking frenzy, wait. The “golden age of cheap flights” doesn’t work on every flight. Why? Because flight prices are based on factors such as route exclusivity and the number of passengers on board.
For example, if Delta is the only airline flying from Baltimore to Spartanburg and there are only four seats available, Delta will likely charge a price it thinks is reasonable. They aren’t greedy – they are just running their business as efficiently as possible based on demand.
Or, as Keyes explains, “Think of airfare as a bell curve. There are cheap and expensive fares for every flight, and prices change daily. In modern times, the curve has shifted to the left, and there are far more good deals than there were a year or two ago. While expensive flights were commonplace in 2022, today they are optional.”
Gary Guthriereporter
Gary’s primary topics for the ConsumerAffairs news team are travel and technology, including the hearing aid industry. (He himself has been a hearing aid wearer for over 15 years.) Prior to joining ConsumerAffairs, he was a program consultant for radio and television stations in approximately 20 markets across the U.S., and a presentation developer for companies such as Jack Daniel’s, Procter & Gamble, AT&T, and Columbia University.
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