A new study of the cost of airfares has revealed significant increases across India, South-east Asia and Australia.
The study, undertaken by Airports Council International, in partnership with Flare Aviation Consulting, examined airfare trends across approximately 6000 routes in 19 countries from 2019 to 2024, providing a detailed view of post-pandemic air travel recovery in the region.
While international air traffic is rebounding, with seat capacity expected to surpass pre-pandemic levels by the end of the year, airfares remain stubbornly high in some markets, the report found.
The study showed a sharp rise in domestic airfares during the first half of 2024 compared to 2019 levels. Notable increases were seen in key domestic markets such as India (+43%), Vietnam (+63%), Malaysia (+36%), Thailand (+26%), and Australia (+21%), all of which heavily rely on domestic air travel.
In India and Vietnam, international fares rose by 16%, Malaysia by 21%, Australia by 14%, and Thailand by 7%, with low-cost carriers (LCCs) contributing to the sharpest increases.
The study also notes that LCCs in the Asia-Pacific region have demonstrated greater resilience to the COVID-19 pandemic, increasing their market share and bargaining power, further influencing airfare trends.
Stefano Baronci, Director General, ACI Asia-Pacific & Middle East, said, “While passenger numbers in Asia-Pacific are returning to pre-pandemic levels this year, many travellers are paying significantly more, especially on domestic routes.
“This indicates that the demand for air travel is likely higher than in 2019. We must ensure that rising airfares do not become a barrier for potential customers. Passengers deserve transparency about these costs.”
Baronci said routes that are reliant on a single airline saw fare increases of over 25%, while those with steady competition experienced only about a 10% rise.
And the blame on higher airfares could not be attributed to airport charges, ACI said.
“From 2019 to 2024, airport charges have decreased by 7% for domestic flights and increased by only 6% for international flights, making their influence on the recent spike in airfares in the region negligible,” Baronci added.