Airfares dropped 5.3% from February to March, according to the Consumer Price Index. It is a continuation from the month prior, when the CPI said fares fell 4% from January to February.
The 5.3% decline, which is adjusted to account for normal seasonal price changes, jibes with reports from airlines since early March of declining domestic demand.
On Wednesday, Delta reported a 1% year-over-year decline for the first quarter in passenger revenue per available seat mile, primarily because of domestic softness. Delta also dialed back capacity plans for the second half of the year. The carrier had expected to grow 4%, according to investment analyst Jamie Baker of J.P. Morgan, but the airline now forecasts zero growth in capacity.
Airlines have attributed demand softness to declining consumer confidence and corporate caution amid uncertainty caused by the Trump administration's tariffs.