As summer travel season rolls to an end, it is also driving down airfares and raising questions about demand in the coming weeks when business travel would normally pick up.
The Transportation Security Administration screened nearly 1.35 million people across the U.S. on Tuesday, the fewest number since May 11. Travel demand usually drops in late summer as children return to school, but airline executives at American and Southwest, among others, have warned they will miss revenue or profit forecasts because of weaker bookings, a trend they blamed on rising cases of the Covid delta variant.
The Centers for Disease Control and Prevention’s director, Dr. Rochelle Walensky, on Tuesday advised unvaccinated people against traveling during Labor Day weekend.
Domestic airfares fell in the week ended Aug. 27 from the previous week for most U.S. airlines, according to a Deutsche Bank report. Fares vary widely depending on airline service and network.