US airlines expect record holiday travel even as airfares climb

WASHINGTON – US airlines expect to ferry a record number of passengers over the holidays after a year in which economic uncertainty and a government shutdown have whipsawed travel demand.

A daily average of 2.9 million passengers will travel between Dec 19 and Jan 5, 1.5 per cent more than a year ago, the Airlines for America lobby group said in a statement. 

Domestic airfares over the period will average US$900 (S$1,158) for a round trip, or 7 per cent more than in 2024, the American Automobile Association said in a separate statement.

New York and New Jersey airports are expecting a record 5.7 million travelers from Dec 22 to Jan 4, a 1 per cent increase from the numbers in 2024, according to the Port Authority of New York and New Jersey. 

In the Midwest, Chicago’s airports are readying for nearly 4.8 million passengers expected to travel through O’Hare and Midway International Airport during the holiday season, a roughly 6 per cent increase from the 2024 holiday season. 

Dallas Fort Worth International Airport is prepared for about 5 million passengers, a 3.2 per cent increase from 2024.  

With airports in New York, Chicago and other cities in the midst of major overhauls, airport agencies are advising passengers to account for ongoing construction and traffic congestion.

Airlines have struggled through 2025, with President Donald Trump’s tariff announcement in April sparking economic uncertainty that prompted some carriers to pull their full-year earnings guidance. 

While bookings recovered over the summer, the government shutdown in the autumn prompted the Federal Aviation Administration to impose temporary flight cuts across 40 major airports, citing a shortage of air traffic controllers and security officers. BLOOMBERG