US airlines’ bookings drop again in May with fares 30% higher than in 2019

U.S. airline bookings fell 2.3% in May from a month earlier, the second consecutive monthly decline this year, according to an Adobe report released Tuesday. Ticket prices skyrocketed above 2019 levels, according to an Adobe report released Tuesday.

Last month, customers spent $8.3 billion on domestic tickets, up 6.2% from April.

As of early this year, consumers have spent more than $37 billion on domestic flights, nearly double what they spent in the first five months of last year, when the new Covid-19 vaccine became widely available.

Vivek Pandya, lead analyst at Adobe Digital, suggests that some consumers may be satisfied with higher fares, especially for those delaying travel plans during the pandemic. Details, written in the report.

Airfares have been buoyed by high fuel prices, labor shortages and a drop in travel demand after two years of the pandemic, marking one of the most dramatic examples of rising inflation this year.

Bookings are mostly steady, though it’s unclear whether demand will last beyond the peak travel seasons of spring and summer, when airlines generate most of their annual revenue.

Andrew Didora, aviation analyst at Bank of America, wrote in a note on Monday: “We are yet to see any breakdowns in flight bookings and investors remain concerned about the potential for flight bookings. deceleration after the tourist peak in the summer”.

Airlines welcomed the Biden administration’s decision last week to lift Covid-19 testing requirements for incoming international travelers. Didora said the change could further boost international bookings.

United Airlines Searches for international trips have increased 7% in the 72 hours since the White House announced it would eliminate international testing requirements, noting that “the vast majority of traveler searches The United States is for short-term travel this summer to destinations in Europe, Mexico and the Caribbean.”