Airfare is down, but here's why that may not last for long
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Travelers at LaGuardia Airport in New York on June 30, 2022. Leslie Josephs | CNBC Airfare fell 6.4% in January from a year earlier, the Labor Department said in its monthly consumer price index report on Tuesday. It might not last too long. January is typically a slower month for travel as customers take fewer trips following the New Year's holiday. Domestic travel usually picks up during school breaks and spring holidays. The drop comes even though carriers are facing capacity constraints this year, in part because of an engine recall from Pratt & Whitney , congested airspace and delayed aircraft deliveries. Meanwhile, airline executives have forecast robust demand this year, even in the domestic market, which has faced more competition from international destinations that opened up in the wake of the pandemic. Those trends could help lift fares. "The capacity decline is related to artificial constraints due to aircraft delivery delays and GTF engine issues...