American Express Global Business Travel forecasts airfares on major routes to rise 25% in 2023 amid rising fuel and dollar prices and labor and aircraft shortages.
The biggest increases are expected on economy class between Australia and Asia, business class on domestic flights in Australia and New Zealand and economy class flights between Asia and Europe.
The cost of economy class on flights to North America will increase by less than 3% and Europe by 5.5% to offset capacity reductions during the pandemic.
“After significant price increases in 2022, price increases in the competitive North American aviation segment are expected to be lower than expected in Europe and Asia Pacific,” the company said on Thursday.
Flights from Asia to Europe are often forced to take longer routes as airlines avoid crossing Russian airspace due to Moscow’s war in Ukraine.
He explained that on a flight between Tokyo and London, for example, a diversion could add about two and a half hours to the flight time and increase fuel consumption by 20%, resulting in an expected increase of 14.5%. Economy class ticket prices between Asia and Europe in 2023.
And global airline capacity is expected to recover by 2023, reaching 92% of 2019 levels. The International Air Transport Association (IATA) on Tuesday expects the aviation industry to return to profitability next year for the first time since then. 2019 including high prices.
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