by Andy Hemmington September 9th, 2010
Growing consumer confidence in the Asia-Pacific means a number of the region’s airlines have decided to jack up the price of tickets. Qantas, the Australian flag-carrier, announced last month that it would be increasing prices by three per cent on domestic and international travel. Singapore Airlines, following a dramatic increase in passenger demand, said it will be pushing fares up as of 1 October.
In August, Korean Air increased the price of tickets on international routes by 10 per cent, the airline’s second price hike since June. Cathay Pacific has declined to say whether it has increased ticket prices, but has said that passenger traffic in July was up by 19.5 per cent on the same month last year.
According to the International Air Transport Association (IATA) average air fares are on the rise, though they have not yet recovered to the levels seen before the global economic meltdown.
IATA added that it expected air travel this year to increase by 7.1 per cent. Albert Tjoeng, spokesman for the air transport body, said compared to 2009, the average one-way economy air fare was up by around 15 per cent. This is still five percent lower than prices in 2008 before the financial crash, he added.
For premium travellers, air fares have increased by 10 per cent on last years prices, according to Tjoeng. However, the price of a first or business class ticket is still around 20 per cent lower than it was when prices hit their peaks in 2008, he said.