Long-Haul Flights See Price Drops as Domestic Airfares Rise in 2025

Travelers planning international trips in 2025 are in for a treat as long-haul flight prices drop significantly, while domestic airfares continue to rise, according to data from fare-tracking site Hopper. The cost of flights to Asia, Europe, and South America has decreased, driven by increased airline capacity and favorable exchange rates, while U.S. domestic flights are seeing higher prices due to slower capacity growth and aircraft delivery delays.

Hopper reports that flights between the U.S. and Asia are down 11% compared to last year, averaging $1,087, with a 6% increase in seat capacity. Europe-bound flights are also cheaper, down 6% to an average of $754, despite a slight drop in seat volume. South America fares have decreased by 4%, averaging $685, thanks to an 8% boost in airline capacity. Meanwhile, flights to Australia and New Zealand are down 6%, averaging $1,346.

Japan has emerged as a particularly popular destination, with Google searches for “flights to Japan” more than doubling over the past year. The weak yen and strong U.S. dollar have made the country an attractive option for travelers. According to the Japan National Tourism Organization (JNTO), international visits to Japan surged nearly 50% in the first 11 months of 2024, reaching close to 33.4 million visitors—a record high even compared to pre-pandemic levels.

However, not all international destinations are seeing price drops. Flights to Canada, Africa, and the Middle East remain flat compared to last year, while fares to Mexico and Central America have increased by 9%, averaging $469. Caribbean flights are also up by 8%.

Domestic airfares, on the other hand, are on the rise. Hopper data shows that U.S. domestic ticket prices are about 12% higher than this time last year, with fares expected to remain elevated through late spring and summer. Airlines are facing challenges with capacity growth and aircraft delivery delays from manufacturers like Boeing and Airbus.

Scott Keyes, founder of travel app Going, noted that the surge in post-pandemic travel demand has leveled out, leading to more stable pricing. “You’re definitely not at a point now where there’s pent-up demand left,” he said. Travelers are also showing increased interest in business class, with searches for premium fares up 19% over last year, according to Kayak.

As airlines continue to adjust to shifting demand and economic conditions, 2025 is shaping up to be a year of contrasts for air travelers: cheaper long-haul flights for international adventurers and higher costs for those staying closer to home.