Drop in US Airfares to Plateau at $267 Before Rising Again for Holidays

The drop in average domestic airfares is expected to plateau this month, at $267, amid a softer demand environment before the Thanksgiving and Christmas holidays, according to a travel tracker report.

Airfares will remain below 2019 levels until November when they begin to match pre-pandemic fares, Hopper said Tuesday in its quarterly travel index, which tracks pricing across airlines, hotels and rental car chains. 

“Fares will peak in late November and early December around $283 per ticket as travelers book their last minute Thanksgiving and Christmas trips,” Montreal-based Hopper said in its analysis of travel costs over the next six months. Fares in January will then decline 12% owing to the seasonally lower demand after the New Year’s holiday. 

International travel to Europe and Asia remains a different story, with strong demand, curbed capacity and rising jet fuel prices keeping fares above pre-pandemic levels. 

Airlines’ trans-Atlantic capacity remains 3% below 2019 levels – with demand surging this year – and fares are now 7% above 2019. Demand for travel to Asia has rebounded to near 2019 levels, as Japan and Korea have opened to foreign visitors, but fares remain 59% higher than pre-pandemic on average.

U.S. hotel prices average $183 per night, 11% higher than a year ago but down from summer peaks over $200 per night, Hopper said. Car rental rates average $45 daily, a 12% decline from last year.