Yahoo Finance What Will Happen to Airfare Prices in 2024?
Are you planning a trip this year that involves air travel? If so, you’ll want to be in the know of how to save on airfare prices. But first, we should take a look at the state of airfare pricing in 2024 from a big-picture perspective.
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Honestly, it’s not looking so bad — or is it? From what the experts tell GOBankingRates, it kind of goes both ways.
The average U.S. domestic airfare dropped in the first quarter of 2023 to $382, down 4.1% from the fourth quarter of 2022’s inflation-adjusted fare of $398, according to the Bureau of Transportation Statistics. While it’s possible that we could see a continuation of this trend, let’s find out what the experts think.
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The Price of Oil Is Dropping, While the Euro Is Strengthening
Currently, the price of oil isn’t as terribly high as it has been in recent years. This is good news for travelers.
“Now that the price of oil has reached less unreasonable levels and the euro is regaining some strength, we can expect the price of jet fuel to fall in the near future,” said Alonso Marly, travel expert at Skylux Travel. “IATA expects an average jet fuel price of around $113.80 in 2024, compared to $115.50 in 2023. While the price remains relatively high, it is below the $135.60 level of 2022, which was largely driven by the Russia-Ukraine conflict.”
More: 11 Expensive Vacation Destinations That Will Be Cheaper in 2024
Demand Is Higher Than Supply in Some Cases
The demand for air travel is strong, and that alone leads to higher pricing because there’s not enough supply to meet it.
“The lack of aircraft keeps the prices up and results in airlines prioritizing their allocation to the most profitable routes,” said Marly. “The shortage in flights to some routes still remains; however, airlines have responded to the growing demand by investing in new aircraft and adding capacity as quickly as possible.”
There Is a Staff Shortage
Since the pandemic, airlines have been wrestling with a staffing shortage. This is also impacting prices.
“Another reason behind increased airfare prices in the previous years was the staff shortage across the travel industry, from pilots to flight attendants and maintenance technicians,” Marly said. “Not only the airlines but also airport service providers made massive layoffs during the pandemic and have not been able to go back to the previous capacity yet.”
Because of the shortage, airlines have to offer higher pay to those who will work for them.
“More expensive labor means fewer flights and higher costs,” Marly said. “The International Civil Aviation Organization (ICAO) estimated that by 2026, the aviation industry would require 480,000 new technicians to maintain aircraft and over 350,000 pilots, and that can take up to a decade to fully resolve.”
More Low-Cost Airlines Are Driving Competitive Pricing
There’s another factor that could actually lower airfare prices: the rise of low-cost airlines.
“One of the biggest changes that we’ve seen in airfare is the growing presence of low-cost airlines,” said Birgir Jónsson, CEO at PLAY Airlines, which is based in Iceland. “While there are skeptics of low-cost airlines, the market continues to grow and is expected to reach $315.4 billion by 2028. As the presence of low-cost carriers expands, so too will the competition to offer affordable airfare options.”
How To Save on Airfare No Matter What
When looking to save on air travel — regardless of what the average market prices — there are a number of measures to consider. Here are just a few tips from experts.
Travel During the Off-Season
When looking to save on air travel, you should take a number of measures, including booking off-season. You could save heaps of money by doing this.
“My number one advice for those looking to cut their holiday expenses is to travel during the off-season,” said Mercedes Zach, travel expert at Asaptickets, part of Trevolution Group. “That way, you will also avoid crowds and, in most cases, get better deals.”
Zach added, “Airfares for flight routes during the busy holiday season can be up to 50% more expensive than other flights booked roughly six months out during non-holiday months.”
Set Up Google Flight Alerts and Other Alert Services
Looking for that great last minute deal? Set up Google flight alerts!
“Once you set this up, you will get email notifications for flight deals,” said Samantha Oppenheimer, blogger at Find Love & Travel. “If you don’t have a specific time frame to fly, you can set up a Google flight alert for just the destination. I have several set up like this.”
Note that Google flight alerts isn’t the only platform in this area.
“I’d also recommend subscribing to a flight alert service, like Going or Thrifty Traveler,” said Kendyl Grender, owner of Kendyl Travels. “If you’re willing to follow the deal and not the destination you can save hundreds and sometimes thousands of dollars. Just this week I got a flight alert for $350 flights to Spain!”
Leverage an Airline Miles Credit Card
If you don’t already have one (and aren’t in credit card debt), it’s worthwhile to open a co-branded airline miles card.
“Opening a co-branded airline miles card not only gives you bonus rewards in the form of miles for purchases that can be used to get free or discounted flights, but many also offer perks that can help keep the cost of flying down such as free checked bags, discounts on in-flight purchases, travel insurance, travel credits, Uber credit and reimbursement for Global Entry /TSA pre check fees,” said budgeting expert Andrea Woroch. “Not to mention, opening a new card could get you a sign up bonus which could be enough to cover the cost of your flight or at least one leg of the trip.”
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