As of June 28, 2024, flights between the United States and Europe are seeing the lowest prices in three years, coinciding with a period in which many countries have eased COVID-19 restrictions. This trend is particularly evident during the typically slower autumn and winter months, outside of major holidays.
Current price trends
Average fares for transatlantic flights to Europe in November are $578, down from $619 a year earlier, according to flight tracking firm Hopper. This is the lowest fare for November since 2021, when prices were $479 amid a significant decline in international travel due to the pandemic. Looking ahead to January 2025, rates are expected to drop further to $558, compared to $578 in January 2024.
In contrast, domestic airfares in the United States increased in every month from November to March compared to last year. Airlines are facing financial challenges, with companies like Spirit Airlines and Southwest Airlines adjusting their flight schedules to maintain price stability. Plane shortages also limit the number of available flights.
Factors affecting airfare
Airlines have rapidly expanded capacity on routes between the United States and Europe to meet growing post-pandemic travel demand. Executives have noticed an increase in demand during the shoulder season, as more travelers seek to avoid the heat and crowds of the summer months. Despite a slight decrease in capacity in the fourth quarter compared to last year, it remains higher than that of 2019 and almost double that of 2021, according to Cirium.
Hayley Berg, chief economist at Hopper, predicts that airfares to Europe will continue to be low into next year. However, as many travelers have recently returned from trips to popular European destinations such as Spain and Italy, airlines are facing difficulties filling seats during the low season.
Strategies for airlines
To stimulate demand, airlines are traditionally known to discount fares during off-peak seasons, but this year saw even steeper reductions. Scott Keyes, founder of the travel app Going, notes that airlines are actively working to encourage travel by offering lower prices.
In an effort to keep travelers engaged and interested, airlines are also diversifying their offerings. United Airlines plans to expand its schedule to include less conventional destinations such as Greenland and Mongolia, recognizing that many customers have already visited major European cities.
Andrew Nocella, United’s chief commercial officer, said: “We look around the world for new destinations and hot spots where we can make money,” indicating a strategic shift to explore profitable routes outside traditional hubs.
The current landscape of transatlantic flights is characterized by competitive prices and innovative strategies on the part of airlines. By adapting to changing consumer preferences and market conditions, travelers can enjoy lower fares and explore new destinations in Europe and beyond.
