Airfare rises by 41pc in India, highest in APAC, ME

Dhaka: India witnessed the biggest international airfare hike in the Asia-Pacific and Middle East region, according to a study conducted by the Airports Council International (ACI). 

The study stated that the markets that saw the highest airfare increases are India (41pc), UAE (34pc), Singapore (30pc) and Australia (23pc).

India has seen among the fastest recoveries in air travel in the post-Covid times. However, now, the one-way international airfares are more than the return fares in pre-Covid times.

The study examined around 36,000 routes in the top 10 aviation markets in the Asia-Pacific and Middle East. The fare comparison in the study was done for a period between the fourth quarter of 2022 and the pre-Covid months of 2019.

The study revealed an alarming increase in international airfares by up to 50 per cent in the post-Covid times. On the other hand, domestic airfares went up by less than 10 per cent as per ACI.

Reports said, the airfare of a 24-hour advance purchase flight from Delhi to Mumbai (non-stop) costs up to Rs 14,000 which is amongst the highest in the world, more than the US, the UK, Australia, China, South Korea and South Africa.

ACI’s study added, “Airfares (globally) have soared above pre-pandemic levels as airlines reap record profits, hampering the aviation industry recovery.”

The study also mentioned that the airlines are making the most of low competition and increased demand to increase their profits and recover the losses incurred during the pandemic period.

On the other hand, airports are continuing to provide enhanced services despite incurring heavy capital and operational costs. 

“These excessive airfares threaten the industry's recovery and may have a far-reaching influence on the associated industry by reducing demand for air travel and increasing the financial burden on the already stressed sector,” said Stefano Baronci, Director General, Asia-Pacific, ACI.

The study also expressed concern over steady airport charges, fuel prices and inflation which contributed majorly to the airfare increase.

“A supply-demand imbalance should not be exploited by airlines at the expense of customers by restricting the capacity, especially internationally, which is a key driver of social and economic growth and a major source of revenues for the airport sector,” Baronci added.

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