Airfares were already dropping. Here’s why they could go even lower in 2024

Inflation has hit most of the economy, but that’s hardly the case with airfare. Not only are airfares down 6% year-over-year based on January 2024 prices, but they’re even down 15% versus a decade ago. That’s according to consumer price index data from the U.S. Bureau of Labor Statistics published in February. Some experts predict airfares to international destinations will drop even lower in 2024.

According to the American Express Global Business Travel Air Monitor 2024 report, prices on certain international routes may drop as much as 12%.

Here’s how AmEx GBT anticipates average economy airfares will change in 2024 versus 2023, for a sampling of regions:

— South America to North America: Drop by 11.9%.

— North America to Central America: Drop by 7.8%.

— North America to Asia: Drop by 7.5%.

— Asia to North America: Drop by 5.2%.

— North America to Europe: Drop by 3.5%.

— Europe to North America: Drop by 1.2%.

So, why are airfares dropping?

EXISTING AIRLINES ARE OFFERING MORE FLIGHTS AND ROUTES

2023 was a huge year for travel, with several records broken. The U.S. State Department issued a record 24 million passport books and cards during the 2023 fiscal year, signaling increased interest in travel abroad.

Katy Nastro, a spokesperson for airfare tracking website Going, has seen an increase in international flights booked as well.

“For example, in 2023, almost 14% more people flew between Costa Rica and the U.S. than pre-pandemic,” Nastro says.

Airlines added 10% more flights between the U.S. and Central America in 2023 versus 2022, according to scheduling data analyzed...