Bloomberg Fare promotions and other signs of weakening domestic demand show business is leveling out for airlines.
European beaches and cities are jam-packed with US tourists eager to venture across the Atlantic now that there are no Covid restrictions to hold them back. But back at home, the air travel recovery appears tapped out.
Alaska Air Group Inc. on Tuesday forecast weaker-than-expected sales growth for the third quarter. Chief Financial Officer Shane Tackett told Bloomberg News that travelers’ prioritization of international sojourns is coming at the expense of its primarily domestic routes and is weighing on fares. Meanwhile, Southwest Airlines Co. in June ran a promotion for 40% off fares on trips between Aug. 15 and Dec. 14, with the week of Thanksgiving blacked out. Frontier Airlines last week had a sale for $29 fares on select days of the week through Nov. 15. Spirit Airlines Inc. offered one-way flights for $50 from Aug. 9 through Oct. 4 excluding Friday and Sunday bookings.