There Are Three Reasons Why Airfare Is So Cheap Right Now. One of Them Might Be Disappearing

Traveling in 2024 may seem rough — seriously.

Come fly away!

We’re already trying to help you save money by showing you the best days to book your room, and the best-rated places to stay in Orlando, and we’ll even let you in on deals from airlines, hotel stays, and even more unconventional ways of traveling like with Brightline’s train service. But it seems there’s one piece of your travel plans that appears to be trending down in pricing, and we’ve got the scoop on the reason for this from experts who know traveling best.

The downward trend in airline prices has continued into 2024. In a report published by Nerdwallet, airfare costs in January of this year were down 9.4% compared to December 2022, and even 3.6% lower than they were in December 2019. Why do you think that could be?

©Porter Airlines

Travel experts have narrowed down three contributing factors to the significant change.

©Orlando International Airport (MCO)

According to Katy Nasto of Going.com, “The single biggest factor for why we see cheap flights is competition.” The recent competition between budget airlines against the major carriers has become a big contribution to keeping prices low.

Flying is changing

But that factor could be going away. Airlines merge on a very frequent basis, and when that happens, there’s less competition. Less competition typically means airfare prices rise. Right now, there are two proposed airline mergers on the table, although the Department of Justice is fighting them. JetBlue would like to buy Spirit Airlines, and the DOJ has ruled against it, but the airlines are appealing that ruling. And Alaska Airlines wants to buy Hawaiian Airlines, but the Department of Justice has just asked for more information in that merger and is still investigating it.

Another contributing factor lately is that jet fuel prices have also dropped in recent months from their peak high in early 2022. Their highest prices then were right around the start of the Ukraine war, according to Flightworx a flight service company.

Southwest

Additionally, lower levels of business travel and increased plane capacity are contributing, according to Diane Swonk — chief economist with the Big Four accounting firm KPMG. She recently sat down with Travel + Leisure to explain why flight costs have dipped below pre-pandemic prices.

However, it may not be all smooth sailing from here on out for the rest of 2024. Kayak recently noted in November 2023 that while domestic airfare was expected to drop, international flights could see prices spike 10% or more in 2024 over the previous year. One solid way to combat this would be for airlines to increase the total number of airline capacity to help temper rising costs.

We’ll be keeping a close eye on rising travel costs soon but in the meantime, make sure you’re following All Ears for the best travel tips and updates!