If you’re planning a summer getaway, you might just catch a break at the checkout screen. Airline ticket prices are down more than five percent compared to this time last year, according to the latest Consumer Price Index. Fewer people are choosing to fly right now, which translates to cheaper seats and less competition for prime routes.
Airline executives attribute the dip in demand to economic uncertainty and policy aftershocks.
“Nobody really relishes uncertainty when they’re talking about what they could do on a vacation and spend hard-earned dollars,” said American Airlines CEO Robert Isom during a quarterly earnings call in April.
Business and government travel are also on the decline. With tighter corporate budgets and sweeping federal layoffs, carriers like United and American are seeing steep drops in government bookings.
“If uncertainty pops up, the first thing that goes away is corporate travel,” noted Conor Cunningham, a travel analyst at Melius Research.
The upside is that fewer business travelers and less federal traffic could lead to quieter airports and more affordable fares throughout the summer season. Alaska Airlines has already cut prices on certain routes to avoid empty seats, and travelers with flexible plans may find deals that would have been hard to come by last year.
Still, recent events have cast a shadow. A fatal crash earlier this year involving an American Airlines jet and a Black Hawk helicopter—killing 67 people—shook public confidence in flying. And ongoing issues at Newark Liberty International Airport (EWR) have added further complications. According to CNN, the airport has faced repeated equipment failures and staffing shortages, causing widespread delays and cancellations.
Even so, with prices trending downward and demand cooling off, this summer could be one of the best times in recent memory to book an affordable trip—especially for leisure travelers willing to explore beyond the usual hotspots. Whether you’re after a quiet beach or a last-minute city adventure, 2025 might be the year to go farther for less.
