According to a recent report by Airports Council International (ACI) for Asia-Pacific and the Middle East, airfares are still more than 10% higher in several markets, even though international air traffic is increasing and seat capacity is predicted to surpass pre-pandemic levels by the end of the year.
ACI’s airfare study, which looked at airfare trends on about 60,000 routes in 19 countries between 2019 and 2024, gave a comprehensive picture of the region’s recovery from the pandemic.
There were notable increases in airfare in several markets. According to the study, domestic airfares increased significantly in the first half of 2024 compared to 2019.
Even though the number of international seats in these nations is expected to increase, airfares are still higher than before the pandemic.
Most Middle Eastern countries had traffic volumes that were higher than they were before the pandemic by Q2 2024. The United Arab Emirates (+39%), Saudi Arabia (+30%), Bahrain (+24%), and Qatar (+27%) have all seen strong traffic increases. However, international airfares in certain nations are still high despite this recovery.
The UAE saw a 22% increase in fares, while Oman experienced a 10% increase. Significant growth was observed in important domestic markets that mainly depend on domestic air travel, including Australia (+21%), Vietnam (+63%), Malaysia (+36%), Thailand (+26%), and India (+43%).
International fares increased by 16% in Vietnam and India, 21% in Malaysia, 14% in Australia, and 7% in Thailand. The largest increases were caused by low-cost carriers (LCCs).
According to the report, LCCs in the Asia-Pacific area have shown increased resilience to the COVID-19 pandemic, which has increased their market share and negotiating leverage and further influenced airfare trends.
“Affordable airfares are crucial not only for ensuring accessibility to air travel but also for supporting the economic vitality of our communities. Excessive fare increases can discourage passengers, hinder connectivity, and ultimately impact the growth of our sector. It is critical to keep air travel within reach for all, allowing our airports and local economies to thrive together,” according to Emmanuel Menanteau, President of ACI Asia-Pacific & Middle East and Regional Director, VINCI Airports.