A record-breaking 71 million people are expected to travel during the upcoming Fourth of July holiday weekend in the United States, according to motorist group AAA. Despite high fuel prices and the threat of a hurricane, vacationers' travel plans remain largely unaffected. AAA forecasts that approximately 60 million people will drive, nearly 6 million will fly, and around 4.6 million will take buses, trains, or cruises. The summer travel season is seen as an important measure of consumer sentiment in an election year. The average national price for a gallon of motor fuel is $3.50, and domestic airfare is 2 percent cheaper compared to last year. The travel industry remains optimistic, and US fuel inventories are well-stocked to mitigate potential disruptions caused by Hurricane Beryl [81f6ec08].
The Memorial Day weekend in the United States had mixed results, with record-breaking preholiday travel but a disappointing box office performance. The number of airline travelers screened at US airports reached new highs, while the US box office had its worst Memorial Day weekend in nearly three decades.
On Friday, more than 2.9 million travelers were screened at US airports, surpassing the previous record set last year on the Sunday after Thanksgiving. The third busiest day on record was set on Thursday when just under 2.9 million travelers were screened. Hartsfield-Jackson Atlanta International Airport, the world's busiest airport, experienced its busiest day ever on Thursday with 111,000 passengers, airline crew, and airport employees screened at security checkpoints. The second busiest day followed on Friday with 109,960 people screened [95c58ba7].
The United States set a new record for the number of air travelers screened at airports in a single day, with the US Transportation Security Administration (TSA) screening 2.99 million airline passengers on Sunday, breaking the previous record set in May [307efa42]. The TSA expects traffic to surpass the 3 million mark on Friday, and it expects to screen more than 32 million people from Thursday through Monday, an increase of more than 5 percent compared to the same period last year. This year has seen the TSA record seven of the 10 busiest days in its history as travel continues to bounce back from the COVID-19 pandemic [307efa42].
US airlines are expecting a record number of passengers this summer, with an estimated 271 million travelers flying between June 1 and August 31. AAA predicts that this Memorial Day weekend will be the busiest start-of-summer weekend in nearly 20 years, with 43.8 million people expected to travel at least 50 miles from home. Memorial Day officially became a federal holiday in 1971 and is observed on the last Monday in May to honor America's fallen soldiers [95c58ba7].
However, the US box office had its worst Memorial Day weekend in nearly three decades. Estimated ticket sales were $128 million, compared to $205 million the previous year. Analysts attribute the lackluster sales to the lingering impact of Hollywood strikes [2bbe3eb6].
The surge in air travel during the Memorial Day weekend reflects a thriving travel industry and a positive outlook for the US driving season. It also indicates a rebound in oil consumption, as global petrol demand is expected to fall by an average of about 100,000 barrels per day in 2025. However, US jet fuel demand is projected to increase by about 5% in 2024, and global consumption may rise at a slightly higher rate [f023c59a].
The number of travelers flying during the Memorial Day weekend is expected to be the highest in nearly 20 years, with a 4.8% increase from last year and a 9% increase from 2019. This increase in air travel has led to a surge in jet fuel demand, with an expected increase of 430,000 barrels per day from the end of April through the end of August. The demand for jet fuel is expected to continue rising, with US passenger volumes in the week ending May 17 already showing a 1.5% increase from the previous week [f023c59a].
The increase in air travel and jet fuel demand is a result of easing Covid-related restrictions and consumers' preference for spending money on experiences. Longer average flight lengths and growing passenger volumes have contributed to the increase in demand. Additionally, travelers are opting for once-in-a-lifetime trips to destinations like Europe or Asia [f023c59a].
Heathrow Airport in London has announced record-breaking passenger numbers, with 81.5 million people passing through its terminals in the 12 months to the end of May. This surpasses the previous 12-month period's figure of 71.6 million. The surge in passenger numbers was seen across all routes, with double-digit year-on-year percentage growth recorded for flights connecting Heathrow with destinations within the UK, Europe, North America, and the Asia/Pacific region. May emerged as the busiest month ever for the airport, handling 7.2 million passengers, a significant increase from the 6.7 million recorded in the same month last year. Heathrow chief executive Thomas Woldbye praised the airport's team and highlighted the broader economic impact of Heathrow's success [00f78862].
As the July 4th holiday approaches, travel in the United States is hitting a new record thanks to lower gas prices and a humming economy. Nearly 71 million people will be on the move over the July 4th week, exceeding pre-pandemic totals. Approximately 60.6 million people will travel by car, up nearly 5% from last year, taking advantage of slightly lower gas prices compared to the same time last year. AAA projects that 5.74 million people will fly to their July 4th destinations, a 7% increase from last year. Domestic airfare is also 2% cheaper this Independence Day week compared to 2023. The Transportation Security Administration (TSA) screened more than 2.9 million people in a single day, indicating a strong rebound in air travel. The US economy, while slowing, is still showing signs of solid growth, with spending on travel and other services rising at a 3.3% rate in the first quarter of the year [6748229c].