You Are Not Imagining It. Everyone You Know is in Europe This Summer

After three years stuck close to home, people are heading to Europe and the Pacific in droves. And they are spending more money when they get there.

The three major US international airlines — American (AAL), Delta (DAL) and United — have all seen a surge in international traffic in recent months and are adding additional service to meet demand.

Travel from the United States has more than doubled to destinations across the Pacific, including China, where travelers faced severe Covid-related restrictions a year ago, airlines reported. Trans-Atlantic demand for flights is also up.

And the surge in international travel at those three major carriers all came with no appreciable drop-off in domestic traffic or fares.

The top destinations

The strong demand is lifting international fares.

Airfare to Europe this summer is averaging nearly $1,200 per ticket, the highest prices in the last six years, according to Hopper, a travel booking app. Flights to Europe are costing 12% more than last summer, and 23% more than in summer 2019.

Where are people going? London, Paris, Rome and Dublin are the top European destinations for US travelers this summer, according to Hopper.

American said passenger revenue on trans-Atlantic route jumped 45% in the first half of this year, and more than tripled on trans-Pacific routes.

United said miles traveled by paying passengers jumped 23% on trans-Atlantic routes in the second quarter and 172% on trans-Pacific routes.

The gains were even larger at Delta, where trans-Atlantic miles flown by passengers jumped 56% in the first half of the year, and the average amount they paid for each of those miles rose 24%.

Overseas travel is also lifting credit-card companies.

Spending higher than before Covid

At Mastercard, spending linked to overseas travel is currently at 154% of pre-pandemic levels, the company said this week.

Mastercard cited “resilient consumer spending, particularly in travel and experiences.”

Domestic travelers aren’t seeing the same spike in fares. But the three major carriers’ domestic flights are still packed and most measures of domestic fares are still higher than pre-pandemic levels.

Source : KRDO