Taking to the Skies Is More Affordable Today During Difficult Summer for Airlines

0
37


Leaving on a Jet Plane

Many Americans are still planning vacations and getaways as the summer calendar winds down. It turns out this is a good time to be in the market for an airplane ticket, as it’s National Cheap Flight Day.

The holiday was born out of the fact airfares tend to fall in price after Labor Day, which is the close of peak summer-travel season. On a historical basis, airlines start lowering prices beginning today, August 23. Industry experts say airfares are kept low over the next four weeks in order to overcome lagging demand. Prices begin picking up again after that, peaking during Thanksgiving travel.

Crowded, Sunny Skies

Florida, aptly known as the Sunshine State, is one of the most popular domestic destinations for US travelers. Industry experts explain the air traffic logjam that unfolds over Florida on a daily basis is one of the biggest problems plaguing the airline industry.

There’s Miami, Key West, Palm Beach, Clearwater, and of course Disney (DIS) World in Orlando. All of those resort locations packed into a single state creates an obstacle course in the skies. Only Atlanta’s air traffic control center handles more flights than Florida’s facilities. Through a cascading effect, delays and cancellations that happen in Florida affect the entire country.

Charting a Course for Normal

In an interview late last month, United Airlines (UAL) CEO Scott Kirby predicted the airline industry’s woes will last through the end of the year and begin to improve sometime in 2023. He explained the industry won’t get its staffing levels where they need to be until next summer.

Other outlets have suggested 2023 is when the skies could become a bit friendlier. The International Air Transport Association has forecast a similar timeline. That may be less than welcome news for people booking a flight in the nearer term, but at least it’s something to look for on the horizon.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS22082301



Source link