Trade war could mean cheaper flights
PHOENIX (AZFamily) — Summer travelers may see cheaper airfare as airlines see a slow-down in demand for domestic flights.
In its new earnings report, Delta Airlines said growth has stalled because of “economic uncertainty around global trade,” and the company pulled guidance for investors for the year ahead.
“The reason Delta and potentially other airlines are revising their guidance is because they’re seeing slumping demand for travel,” said Julian Kheel, founder and CEO of Points Path. “When that happens, that means they’ll potentially have to lower their airfares or cut flights in order to fill the seats. That means if you haven’t booked a ticket, you may want to wait a little bit and see if prices start to drop.”
If you have an upcoming trip that’s not flexible, book it now, but choose a refundable fare. If airfare drops, you can cancel and rebook to take advantage of the lower fares, Kheel suggests.
“If the country does end up slumping into a recession, that can be advantageous when it comes to frequent flyer miles because airlines and hotels will be looking to get people onto their flights and into their rooms, they’re more likely to offer better deals with points and miles,” he told On Your Side.
Other airlines are scheduled to release their quarterly reports later this month.
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