Airfare prices for September fall amid growing demand and flight cancellations

Yahoo Finance's Kerry Hannon joins the Live show to highlight how September airfare prices are forecasted to fall.

Video transcript

DAVE BRIGGS: If sky high airfares have kept you grounded all summer, now is the time to change all that and to get travelling. Domestic airfares coming in for a landing recently. Yahoo Finance Senior Columnist Kerry Hannon is here with that story. Kerry, what are we seeing in domestic airfares?

KERRY HANNON: Oh, I love that. Yes, Hopper, which is a booking app, came out with their index this week that says they're coming down about 25% this month and will stay low through most of September and start to tick up again as we get through October and November and then back up to closer to $400 average round trip domestic fare by the end of the year.

But right now, you can get some really great deals. And they're coming in probably under $300 right now and probably will linger there throughout September. So but what they're telling me is get going. You need to get the best fares. You really need to book about three weeks in advance. So rev up that Google Flight Search or Kayak or whoever you like to use or Hopper and start looking because now is really the time to do this if you want to get those good fares.

SEANA SMITH: Kerry, what about delays and cancellations? Any improvement there?

KERRY HANNON: Well, I'm telling you, they're trying. But the fact is no. We're going to have this with us for a while. They're not expecting to get back to capacity really until next summer. So airlines have cut back on flights. And so when there's a problem, everyone's vying for these seats, which is why you need to get going to buy your tickets.

But when something happens, there's not a way-- a mechanical problem or weather issue, something that delays things, you can't just shift to another flight because they're just fewer flights out there. So unfortunately, this is going to be with us for a while.

DAVE BRIGGS: Some good news to wrap up this day. Kerry Hannon, thank you for that. Seana, it seems like a time to set those alerts. And that's the key point that she had. Whether it's Scott's Cheap Flights or whomever you use, pick where you want to go. And then if the deal comes to you, jump on it.

SEANA SMITH: And it was also interesting the timeline there. She said at least three weeks out. I thought it was going to be at least six, nine weeks, 12 weeks out when you want to be booking those tickets. So good news here, if you're looking to travel maybe in September or October, you certainly do have time to plan for that airfare. We were waiting for it to come back a bit. It sounds like it's steadily declining, so good news here for us, the consumer.

DAVE BRIGGS: Yeah, finally, some good deflationary stories out there. All right, that'll do it for us for Seana Smith. I'm Dave Briggs. Yahoo Finance returns 9:00 AM Eastern time tomorrow. We're right back here tomorrow at 3:00 Eastern time. Have a good night.