By Mohamed Attia
American Express Global Business Travel predicted that airline ticket prices on major routes would increase by up to to 25 per cent in 2023 in light of the rise in fuel and dollar prices and the shortage of workers and aircraft.
The company added that the largest rises are expected in economy class between Australia and Asia, and in business class on domestic Australian and New Zealand flights, as well as economy class flights between Asia and Europe.
The cost of economy class on flights within North America will also increase by up to 3 per cent less, and within Europe 5.5 per cent, offsetting capacity cuts during the pandemic.
Flights from Asia to Europe are forced to take longer routes in many cases, as airlines are avoiding crossing Russian airspace due to Moscow’s attack in Ukraine.
The company explained that on a flight between Tokyo and London for example, a change of route could add up approximately two and a half hours for flight time and a 20 per cent increase in fuel used, which will lead to an expected increase 14.5 per cent in economy class fares between Asia and Europe in 2023.
On the other hand, the International Air Transport Association (IATA) expected the aviation sector to return to profitability next year, for the first time Since 2019, due in part to the price hike.
