A Frontier Airlines airplane taxis past a Spirit Airlines aircraft at Indianapolis International Airport in Indianapolis, Indiana. Airlines have a record 260 million seats to fill this quarter and are offering fares that are as low as $29 for off-peak periods.
Due to the increased capacity in recent months, and the return of leisure travelers to traditional booking patterns, airlines are finding ways to fill planes outside of holidays or other popular travel periods. Airlines have scheduled a record 259.8 million seats for domestic flights in the fourth quarter, up nearly 8% from last year, on 1.86 million flights, up 6% from 2022.
Falling fares show that JetBlue Airways said average fares dropped more than 12% in the third quarter during the same period of 2022 to $201.73, and budget carrier Spirit Airlines said fares dropped nearly 28% from a year earlier to $48.73.
With the declining pricing power in the off-peak periods, Southwest Airlines plans to slow its growth next year, and Frontier Airlines plans to concentrate its growth away from saturated markets. Despite all this, holiday demand is still strong and expected to break records.
Looking ahead to 2024, airlines are poring over their schedules to best utilize aircraft while facing higher costs due to fuel and labor. Henry Harteveldt, founder of travel industry consulting firm Atmosphere Research Group believes that if inflation continues at the current pace and hiring softens, airlines may invest in deeper promotions. Full-service carriers have the advantage of offering a variety of fares and products, from no-frills basic economy to first class.
To stay updated on the latest news, follow CNBC PRO.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years. I have a wealth of knowledge to share with my readers, and my goal is to help them navigate the ever-changing world of cryptocurrencies.
