International airfare is experiencing a decline compared to last year, while domestic U.S. ticket prices are increasing. This trend is attributed to several factors, including airlines expanding capacity to popular destinations and leveling out demand growth post-pandemic.
International airfare is falling this year over last, while domestic U.S. tickets are more expensive, according to Hopper. Demand isn't expected to have the big spikes that materialized in the years following the pandemic. For example, through mid-2025, flights between the U.S. and Asia are down 11% this year over last, averaging $1,087, with capacity up 6% from 2024. Europe flights are down 6% at $754, Hopper data shows.
Flights to Africa and the Middle East are flat compared with last year, while flights to South America are down 4% to $685, and Mexico and Central America flights from the U.S. are up 9% to $469. Meanwhile, domestic U.S. ticket prices are on the rise, as airlines have become more cautious about capacity growth in the U.S. and face aircraft delivery delays. But the cheaper international trips come as airlines have increased capacity to popular destinations and as demand growth has leveled out compared with post-pandemic surges, when travelers raced to book trips abroad after travel restrictions were lifted. Fares were higher as airlines faced labor and aircraft shortages coming out of the pandemic. 'You're definitely not at a point now where there's pent-up demand left,' said Scott Keyes, founder of travel app Going, previously known as Scott's Cheap Flights. Favorable exchange rates for travelers using U.S. dollars in many countries, including hotspot Japan, have boosted demand. International visitors to Japan surged nearly 50% in the first 11 months of 2024 to close to 33.4 million people, according to Japanese government data. Kayak said flights to Asia are the cheapest in at least three years, with interest from customers on the rise. Japanese cities Tokyo, Sapporo and Osaka are posting the biggest percentage increases in searches, Kayak noted. It also said airfares are lower across the Caribbean, with cheaper tickets to Dominica (down 21% over last year), and Barbados and St. Lucia, which are down 17% compared with last year, Kayak said
AIRFARE INTERNATIONAL TRAVEL DOMESTIC TRAVEL DEMAND EXCHANGE RATES
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