ACI Asia-Pacific: 'Excessive airfares threaten the industry's long term recovery'

ACI Asia-Pacific released (12-Jun-2023) a study on airfare trends in the region, in collaboration with Flare Aviation Consulting. The study examined approximately 36,000 routes in the top 10 aviation markets in Asia Pacific, revealing an "alarming" increase in international airfares of up to 50%, compared to pre-pandemic levels. Domestic airfares increased by less than 10%. Details include:

• Markets that recorded the highest airfare increases were India (41%), the United Arab Emirates (34%), Singapore (30%) and Australia (23%);
• Despite a progressive increase in traffic, domestic airfares continued to increase in several markets in 1Q2023, including India, Indonesia, Saudi Arabia, South Korea and Japan. Airfares decreased marginally on international routes;
• Fuel prices and inflation were responsible for a "significant" portion of the airfare increases. Fuel prices increased by 76% in 2022, compared to 2019. Airlines' costs increased as the Consumer Price Index recorded an average 10% increase over the same period;
• ACI Asia-Pacific claimed: "Airlines are capitalising on low competition and pent up demand to increase profits and recover losses incurred during the pandemic, while airports continue to provide enhanced services to passengers despite incurring heavy operational and capital expenditures".

ACI Asia-Pacific director general Stefano Baronci stated: "These excessive airfares threaten the industry's long term recovery and may have a far reaching influence on the associated industry by reducing demand for air travel". Mr Baronci said: "Airlines should exercise fair pricing that supports recovery and safeguards consumers' interests". He added: "A supply-demand imbalance should not be exploited by airlines at the expense of customers by restricting the capacity, especially international one which is a key driver of social and economic growth and a major source of revenues for the airport sector". [more - original PR]