Passengers at Reagan National Airport in Arlington, Virginia, on May 26, 2023.
Andrew Caballero-Reynolds | AFP | fake images
Flights are getting cheaper as airlines ramp up service during what is shaping up to be a busy summer.
US inflation data this week showed airfares fell 8.1% in June from the previous month, the biggest drop in nearly a year and the second biggest since April 2020, when the coronavirus pandemic covid suddenly reduced the demand for air travel.
Airlines are enjoying cheaper fuel and a lasting boom in travel. Daily checks at airports by the Transportation Security Administration have recently surpassed 2019 levels, before the pandemic.
delta airlines reported its highest quarterly earnings on Thursday, estimated more record revenue through the start of the fall and raised its full-year forecast.
Delta’s revenue per available seat mile, which measures how much airlines generate for each seat they fly a mile, increased 1% in the latest quarter from a year ago, with capacity increasing 17%. It is a sign that the rates and income are maintained despite the additional service.
International fares appear to be improving as customers opt for overseas travel, a change from previous years when travelers preferred domestic destinations during pandemic travel restrictions.
Delta’s domestic revenue unit revenue fell 1% in the quarter over the same period in 2019, but transatlantic unit revenue increased 22% and the smaller transpacific segment increased 29% and revenue from the Latin America service unit increased by 16%.
Airlines have been especially aggressive in adding record amounts of service to Europe this summer and higher unit revenues show fares there continue.
united airlines and american airlines will provide its insights on the lawsuit next week when it is scheduled to report results.