Airfares are on their way up
While airfares in all Asia Pacific remained stable in the three months ending Jan 2006, the latest American Express Airfare Index reveals a steady and upward regional trend.india Updated: Apr 15, 2006 11:23 IST
Are Air fares headed northwards? While airfares across all classes in all Asia Pacific markets have remained generally stable in the three months ending January 2006, the latest American Express Airfare Index reveals a steady and upward regional trend overall for the past three years.
The only fare class to change during the quarter from India was first class, which rose 0.3 per cent. Year on year, there were increases across first, business, full economy and discount economy of 3.2 per cent, 2.6 per cent, 3.8 per cent and 3.8 per cent respectively.
Over the last three years however, there has been a steady decline in excursion fares, both for peak and offseason rates.
The most significant changes for the quarter were recorded from Australia where First Class and Business Class fares increased 0.9 per cent and 0.5 per cent respectively while discount economy and lowest off-season excursion fares from Australia fell 1.7 per cent and 0.6 per cent respectively.
There was some shift in domestic fares within Australia during the quarter with Discount Economy fares down 3.6%, while lowest peak-season and off-season excursion dropped 1.2 per cent while business and full economy remained unchanged.
The crude oil spike is obviously playing a part in the fare hike.
With crude once again rising, airlines will have to rejig their fare structures in the short term.
“The oil price mostly remained above $60 in recent months with the Malaysian Tapis spiking above $70 a barrel in January.
Substantial temporary fuel surcharges remain in place for travel with most Asia-Pacific airlines, which are additional to the airfares tracked in the Index,” according to Robert Tedesco, Head of Consulting Services, American Express.