Las Vegas tourism downturn deepens as airport traffic falls for third straight month

Las Vegas’ tourism engine cooled again in August, as Harry Reid International Airport reported 4.56 million passengers, down about six percent from a year earlier. The month marked the third consecutive drop in annualized traffic, and the year-to-date total for 2025 sits roughly 4.5% below 2024 levels as the city confronts a broader slowdown in visitors. The airport’s August figure follows a summer when the trend of weaker demand persisted despite a typically busy Labor Day travel period.

The downturn has been led by lower activity from budget carriers, notably Spirit Airlines, which carried just over 400,000 passengers to Las Vegas in August — a drop of 46.3% from August 2024. Spirit’s fleet was constrained earlier in the year after grounding more than 50 aircraft amid fleet issues and financial difficulties. Other carriers also reported softer results in Las Vegas last month as the broader price environment weighed on travel demand.

Observers cited high costs in Las Vegas as a key factor discouraging visitors, reinforcing the city’s reputation for being expensive at times. Reports cited examples such as steep markups on drinks and other amenities, along with elevated hotel and entertainment prices, as contributors to softer traveler sentiment and reduced bookings during what is typically a peak period for the market. The lull arrives as 2025 data continues to reflect a broader squeeze on international tourism to the United States.

The latest data come amid a broader narrative about international visitation to the United States. Air Canada, a principal source of Canadian travelers to Las Vegas, reported a year-over-year decline in passengers in 2025, a period still affected by the backdrop of geopolitical rhetoric. In Las Vegas, industry officials have noted sustained concerns among Canadian tourists following statements by U.S. officials and Presidents, which some observers say have dented cross-border travel sentiment. The Las Vegas Sun previously cited comments from the city’s tourism chief about Canadian travelers expressing frustration in response to policy conversations and tariff talk that has affected consumer confidence.

In the broader travel-and-tourism picture, the World Travel & Tourism Council warned in May 2025 that the United States could see a notable drop in international visitor spending, forecasting about $12.5 billion less in 2025 than previously anticipated. The council’s assessment underscored the sensitivity of U.S. tourism to international mobility and exchange rates, even as domestic leisure travel remains a pillar of the Las Vegas economy.

Industry observers also note that August’s travel data may be skewed by the Labor Day weekend, a period that typically channels more travelers through major hubs but did not fully offset the yearlong softness in demand. Analysts caution that the capacity outlook for Las Vegas’ airport remains tight, with a separate industry report suggesting capacity at the airport could fall by around 95,000 seats per day in the second half of 2025, a development that could further constrain the city’s ability to rebound quickly.

Taken together, the August numbers reinforce a pattern of slowing visitation as consumers confront higher prices, and as international travel patterns shift amid geopolitical and economic headwinds. While Las Vegas remains a premier entertainment and gaming destination, the combination of elevated costs, fluctuating airline capacity, and evolving traveler priorities has produced a challenging backdrop for the city’s tourism and hospitality sectors in 2025.