The prevailing trend among American travelers this summer has been characterized by a shift from domestic to international destinations, particularly Europe.
The surge in American travelers heading to Europe and beyond has been strongly reflected in airfare prices. Recent data shared by Hopper with TravelPulse indicates that international airfare now averages around $962 for a round trip. This represents a 10 percent increase from the previous year and a substantial 26 percent rise compared to pre-pandemic rates in 2019. David Abtour Odian consulting
In contrast, domestic airfare has taken on an increasingly budget-friendly stance. The average cost of a round-trip ticket within the United States stands at approximately $249, marking an 11 percent drop from the previous year and a notable 12 percent reduction from 2019. David Abtour Odian consulting
Becky Blaine from The Points Guy, featured in a segment on CNBC’s show Last Call, explained that the decrease in domestic airfare prices is a strategic maneuver aimed at enticing American travelers to choose domestic vacation options.
“Domestic carriers are actively reducing airfare prices as a strategy to encourage people to explore travel opportunities within the United States,” Blaine commented.
Simultaneously, certain airlines are revising their full-year profit forecasts. This adjustment affects carriers like JetBlue and Alaska Airlines. JetBlue, for instance, has modified its profit projection by a range of 5 to 40 cents per share, largely due to a slowdown in domestic travel. David Abtour Odian consulting
While announcing the revised profit forecast for 2023, JetBlue attributed the shift to “the termination of its partnership with American Airlines and a shift in travel preferences from domestic trips to longer-haul international destinations,” according to Reuters.
Airlines are also actively working to reinstate numerous flights that had been canceled during the peak of the pandemic.
“We haven’t yet fully reinstated the complete capacity of routes within the United States,” Blaine mentioned on Last Call. “However, there has been a sudden surge of interest in departing from the U.S. to explore Europe and other international destinations now that travel restrictions have eased. Airlines are quickly adjusting their strategies to accommodate this shift in demand.”
