2025 Air Travel Updates

2025 Air Travel Update 

Last year was one of the busiest ever for airline travel. 2025 is forecast to be an even more robust year with airline travel expected to set a record high number of passengers. The International Air Transport Association (IATA) predicts that 5.2 billion people will fly this year, a 6.7% increase from 2024.  If that prediction becomes a reality, it will mark the first time in history to exceed the 5 billion milestone.

The airline industry is also set to surpass $1 trillion in revenue for the first time, marking a 4.4% increase from 2024 and highlighting a strong recovery in air travel demand post-pandemic.

In business aviation, corporate travel will continue to grow as more businesses opt for private aviation as a solution for their travel needs. Since 2019 levels, business or private travel has increased 24%, including a 3% rise in 2024 over 2023.

Yet while consumer costs are up for many travel amenities from hotels to restaurants, air travel ticket prices overall were down over 5% in 2024 when compared to both 2023 and pre-pandemic 2019. However, that trend is expected to reverse through 2025. In terms of capacity – the number of available airline seats – the industry is seeing a 4.7% overall capacity reduction from discount airlines – mostly from cuts at Southwest Airlines, Spirit, and JetBlue. But domestic airline growth overall during 2025 in the US is expected to rise.

REAL ID

Beginning May 7, 2025, the Transportation Security Administration (TSA) will enforce REAL ID requirements at airport security checkpoints across the US. To board a domestic flight, travelers must present a REAL ID-compliant driver’s license or use an alternative form of acceptable identification, such as a passport or a compliant ID card.

To check if a driver’s license or ID is REAL ID-compliant, travelers can verify a star symbol located in the upper corner of a license or ID card. If not yet compliant, REAL IDs can be applied for at state Department of Motor Vehicles locations. For details on eligibility and application steps, visit the official DHS website or use their REAL ID compliance tool.

US Hotel Fees

Another new protection for travelers is expected to take effect sometime during 2025. The Federal Trade Commission (FTC) has announced plans to finalize a rule  requiring US hotels and vacation rentals to disclose all fees in their advertised prices. The goal is to eliminate hidden costs and enforce full disclosure of so-called junk fees ensuring greater pricing transparency for consumers. You can learn more about the ruling here.

Flying Overseas? New European Requirements

For 2025 travel plans that include Europe, there is a new system and fee to be aware of: ETIAS. The European Travel Information and Authorization System (ETIAS) launches in May 2025. For Americans flying to countries within the European Union, they need to apply for ETIAS approval before boarding a flight. The application has a small fee and can be completed online. Once approved, ETIAS authorization is valid for three years or until passport expiration. The authorization includes multiple trips to participating countries, as long as visits are no longer than 90 days within a 180-day period.

Extended Shoulder Seasons

Vacation travel is expanding from peak seasons into  what’s known in the travel industry as shoulder seasons – the weeks between major holiday and summer travel seasons. Shoulder seasons are expanding due to a number of factors such as tourists desire to visit busy destinations after crowds thin out. Also, with the rise of remote employment, many travelers work while away from a traditional office. Airlines recognized this phenomenon and have increased flights to accommodate shoulder season travelers for numerous popular and off-the-beaten path destinations.

With 2024 in the record books as the hottest earth year on record, some travelers prefer to avoid the heat and travel when or where temperatures are cooler. This trend has even led to a newly named vacation category: Coolcations. Cooler temperature destinations have seen increased demand – including locales not normally on summer bucket list travel – such as Iceland, up 62% last year, and Finland up 150% compared to 2023 – while popular Greece saw a 17% decrease in summer tourists.

Department of Transportation (DOT) Refund Rules

Last year, the Department of Transportation (DOT) introduced new regulations regarding passenger rights during airline flight cancellations and significant schedule change events. Key automatic refund requirements for airlines went into effect on May 16, 2024, when President Biden signed the FAA Reauthorization Act of 2024 into law, and the remaining airline refund protections under DOT's rule are effective as of October 28, 2024.

The rules require that airlines automatically issue cash refunds for canceled or significantly delayed or altered flights without passengers requesting the refunds, with the goal of making the entire process more hassle-free and transparent. Carriers must refund fees for service such as checked baggage or Wi-Fi if they are not provided. For at a glance details, check out the DOT’s Passenger Service Dashboard that also includes additional helpful rules regarding family travel and military service travel.

Additionally, the DOT has set April 25 as the deadline for a new rule concerning travel credits for passengers affected by serious communicable diseases. Under this regulation, airlines must issue transferable travel credits or vouchers valid for at least five years to travelers restricted from flying due to government-imposed restrictions or medical advice.

The Easy Way to Track Flights

One thing that hasn’t changed for 2025 travel is how easy it is to track flights using FlightAware. From the FlightAware website to the handy free FlightAware app, it’s as simple as ever to quickly locate important flight information – including critical advance notice of delays and cancellations.