A new report has revealed that airfares in Southeast Asia and Oceania have experienced the highest increases globally, with fares rising 20% and 30% above pre-pandemic levels, respectively.
The report by Airports Council International (ACI) Asia-Pacific & Middle East highlights the rising cost of air travel.
Travellers hoping for airfares to fall as airlines returned to full capacity after Covid will be disappointed by the ACI findings, which show the Asia-Pacific region has witnessed an average +8% increase in 1H 2019 to 2025 as compared to an average -18% decrease observed during 1H 2014 to 2019.
ACI said the increase reported over the first half of the current year has been much more acute at country level, especially in the Oceania and ASEAN regions.
ACI said the report “once again proves the marginal role of airport charges in driving the changes in airfares”.
“Airport charges and turnaround costs (including government taxes) have generally increased below CPI levels. Interestingly, in markets where airport charges have moderately decreased, airfares have continued their upward momentum.”
Key findings
Airfares have surged across all markets, except China.
Southeast Asia and Oceania experienced the highest increases, with airfares rising 20% and 30% above pre-pandemic levels, respectively.
Oceania is the most expensive region for air travel.
India and China currently below the regional average in terms of airfare levels.
International fares increased by 17% above pre-pandemic, especially in Southeast Asia and developed East Asia.
Domestic fares surged over 30% above 2019 levels, especially for short-haul LCC routes where reduced competition allows higher pricing.
Economic travellers bear the biggest share of these increases.
Routes with low airline competition saw airfares increased up to 13 percentage points above the regional average.
Stefano Baronci, director general, ACI Asia-Pacific & Middle East, noted: " To make air travel more affordable from a consumer perspective, policymakers should focus on liberalising markets such as open skies, market access and efficient slot policy that can strengthen airline competition while ensuring airports can continue to invest to build capacity to support the growth in the coming years."