Can August still be considered a peak summer travel month? That’s the question United States airlines seem to be asking, as once-easy profits in late summer are getting harder and harder to come by for many carriers.
Travel patterns and demand for August are shifting due to a variety of reasons, which are especially prominent this year. Among those factors are schools that let out earlier in May and June and start back earlier in August, as well as soaring temperatures and crowds that are making summer trips to popular locales like Europe less appealing, according to a report by CNBC.
“Carriers still make the bulk of their money in the second and third quarters,” says CNBC’s report. “But as travel demand has shifted, and in some cases customers have become altogether unpredictable, making the third quarter less of a shoo-in moneymaker for airlines.”
Another factor in 2025 has been the general sense of economic uncertainty amid President Trump’s volatile tariff policies. Travelers have been spending less all summer, especially budget-conscious passengers on domestic routes, which has led to airlines cutting capacity due to weak demand.
Although many U.S. carriers trimmed flight schedules throughout the summer, the effect has been especially noticeable in August: domestic capacity is down 6% for the month compared to July, according to Cirium data analyzed by CNBC. That’s higher than the same period last year, when U.S. carriers cut capacity by 4% from July to August, and it’s a significant increase compared to 2023, when airlines only cut 0.6% from July to August.
With less capacity available, airfares are on the rise. Airfares jumped by 4% from June to July, according to US inflation data, and average ticket prices are expected to continue to climb in August.
To capture the demand that seems to be peaking earlier in the summer, some US airlines are adjusting their schedules for next year. American Airlines told CNBC that it will be starting its summer 2026 schedule the week before Memorial Day. Southwest Airlines also wrapped up summer flying 10 days earlier this year compared to 2023.
Airlines and travel companies have a brighter outlook heading into the fall travel season, with carriers like United and Southwest Airlines reporting more steady demand and projecting stronger revenue growth in the fourth quarter than earlier in the summer.
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