Transatlantic Airfares Plunge Amid European Travel Slump

Transatlantic airfares from Europe to the United States have dropped to pre-pandemic lows amid a sharp decline in Western European travel to the US, with the trend expected to continue through at least July. Overseas arrivals to the US in May fell 2.8% year-over-year, while Western European arrivals dropped 4.4% and Eastern European arrivals rose by 4.6%. Major airlines are responding to weak European demand and a strong US dollar by reducing fares to key US cities, with average round-trip fares falling 7-10% and some routes, like Atlanta to London, down as much as 55%. The shift has led airlines to focus more on markets such as Mexico, Canada, and the Caribbean. Industry experts attribute the downturn to economic factors, stricter US border policies, and evolving global travel trends. The ongoing softness in demand may make 2025 a challenging year for transatlantic airline profitability.