International Airfares in Germany Drop by 3% in Early 2024 as Travel Costs Begin to Stabilize

In the first half of 2024, German holidaymakers witnessed a welcome decrease in international airfares, with prices falling by an average of 3.1% compared to the same period last year. This decline follows significant price increases observed last year, according to data released by the Federal Statistics Office (Destatis) on Tuesday.

The reduction was particularly notable in economy class tickets to long-haul destinations. Fares to Central America saw the largest decrease, dropping by 15.8%, while those to Asia and Australia fell by 12.3%, and tickets to North America were reduced by 7.4%. However, not all regions saw declines; airfares to European destinations rose by 2.7%, and those to Africa increased by 4.1%. Prices for domestic flights in Germany saw a marginal increase of 0.2%.

Despite these reductions, the overall price level of international flights remains elevated compared to pre-pandemic figures, with a 20.9% increase over the first six months compared to two years ago, as travel rebounds following the end of COVID-related restrictions.

The broader trend across Europe and Asia shows airfares beginning to plateau or even decrease, suggesting that the intense travel demand post-COVID may be starting to wane. This shift comes as a challenge to airlines like Germany’s Lufthansa, which recently lowered its profit forecast for the second time this year due to high operational costs, including significant wage settlements and persistent delays in aircraft deliveries from major manufacturers like Airbus and Boeing.