February airfares in Asia were 33% higher than the same period in 2019, 12% higher than in Europe and 17% higher than in North America, according to data from Skyscanner Travel Insight, the world's leading flight search app.
Economy fares to Asia from North America and Europe are expected to rise 9.5% and 9.8%, respectively, this year, according to forecasts from travel app American Express Global Business Travel (Amex GBT). Business class fares are similar. "On some routes, passengers are paying double what they spent four years ago," CNN commented.
A business class ticket from Paris to Shanghai cost $5,650 in 2019, and is now $11,500, according to Amex GBT. The same goes for the Singapore-Shanghai route. Also according to the app, intercontinental flights are expected to be even more expensive (from Asia to other continents), as the frequency of airlines is still not the same as before the pandemic.
Specifically, the price of economy class tickets from Asia to Australia increased by 5.1%, to Europe by 14.5%, and to North America by 10.3%. In the opposite direction, ticket prices increased by 24.9%, 9.8%, and 9.5%, respectively.
Customers check in at Noi Bai airport.
Customers in the Asia-Pacific region are facing higher fares than elsewhere, reflecting an uneven recovery from the pandemic. The problem is not expected to end anytime soon, experts say. Hugh Aitken, a spokesman for Skyscanner, noted that global airfares were higher than before Covid-19 due to “a multitude of factors.” Higher costs, staff shortages and Russia’s closure of its airspace were among the reasons for the price hikes.
But the main drawback is that Asia is still in the early stages of reopening. North America and Europe eased border restrictions early last year. Major Asian destinations like China and Japan are only now opening up. Aitken said that the regions that lifted restrictions last are also the slowest to reopen, leading to higher ticket prices. “Right now, it’s APAC,” Aitken said.
When people are able to travel again and demand increases, airlines will not be able to add services immediately. Jeremy Quek, a representative of Amex GBT, said the airline needs at least a month to plan and implement.
The CEO of Trip.com, one of China’s largest booking and ticketing apps, said that although China has reopened, flight capacity is now only 15-20% of pre-pandemic levels. Meanwhile, long-haul international flight capacity, such as between Europe and Asia, in the first quarter was only 17% of 2019 levels.
"Airline capacity is recovering, but not at the pace we expected. That's the key. Lower capacity, higher demand is the recipe for price increases," Quek said.
In 2022, Russia closed its airspace as tensions with Ukraine began. Many flights had to reroute, making the journey longer and more expensive. Restrictions remain in place. The hardest-hit routes are Asia-North America or Europe.
"The Tokyo-London leg now requires a trip east over the North Pacific, Alaska, Canada and Greenland, adding 2.4 hours of flight time and burning about 5,600 gallons of fuel, a 20% increase in cost," Amex GBT said in a report.
Fuel costs have also soared. Alan Joyce, CEO of Australian airline Qantas, said the company's fuel bill is 65% higher than in 2019. "Airfares will have to be higher because fuel is higher," Joyce said. Joyce also said the airline needs time to retrain crews that have been laid off during the pandemic.
“Our pilots have been flying buses in Sydney and Melbourne for a while because they don’t have work,” Joyce said. So getting a pilot back on the plane requires additional training costs.
Despite the high prices, experts believe this won't deter travelers. They haven't seen any signs of a slowdown in demand. "We've seen strong and sustained demand on Skyscanner for travel in 2023," Aitken said.
Some airlines are still offering discounts. Qantas and Jetstar have announced more than a million fewer seats this year on domestic and international routes. Japan Airlines has also tried to cut prices. Its website crashed in early March after a promotion caused a surge in traffic.
“In the current climate, the easiest way to find good deals is to book early,” says Aitken.
