Labor Day airfares drop sharply; analysts expect continued savings through holiday season

The only category showing a price increase was international premium economy, which rose by just over 4%. This may explain why airlines are putting more resources into premium economy offerings.

Award bookings using points showed similar trends but were less consistent overall. Domestic award ticket prices dropped by an average of 4.46%, while international award bookings fell by roughly 4.83%. Premium economy awards for international routes increased slightly—by about 1.21% year over year.

Specific examples highlighted include Las Vegas' Harry Reid International Airport (LAS), where the average coach fare this year was $441 compared to approximately $538 last year—a decrease of nearly 18%. Las Vegas has seen particularly low demand internationally. Meanwhile, searches for Tokyo-area airports surged by more than 40%, yet average coach ticket prices there decreased almost 13% to $1,226. Most other major international destinations experienced falling prices as well, except for some locations such as Iceland, Costa Rica, Milan, and select Canadian airports where fares increased.

These lower airfares could indicate further deals ahead for holiday travel later in the year.

"Usually, we tell people to book domestic flights one to two months ahead of time and international flights three to five months ahead of time," said Clint Henderson of The Points Guy. "While we usually tell people to stick to those timelines, we've seen lots of last-minute deals this year."

Henderson advises travelers to begin monitoring holiday airfares now and act quickly if they find a good deal: "Still, I'd strongly urge folks to begin tracking prices for the holidays now — and if you see a deal, jump on it."

He also shared several strategies for saving money on airfare:

- Book vacation packages with companies like American Airlines Vacations.

- Use Google Flights Explore to find affordable destinations.

- Set price alerts on Google Flights.

- Book now and rebook later if prices fall (excluding basic economy).

- Use award booking tools such as Points Path.

- Remain flexible with travel dates.

"I hope this data from our friends at Points Path means there are lots of deals just in time for Christmas," Henderson said.