If you have been waiting for airfares to fall back to last year’s levels, the airline industry in Asia has a sobering message. Speaking after the Association of Asia Pacific Airlines conference in Kuala Lumpur on November 13, director-general Wong Hong said it looks like high prices will continue to prevail. The association represents 18 airlines across the region, and his comments are among the clearest signals yet that carriers do not expect relief soon.
The driver is fuel. Jet fuel is trading at about $180 a barrel, compared with roughly $80 a year earlier, and fuel accounts for about a third of an airline’s operating costs. Since the Iran war began in late February, carriers in Asia-Pacific, Europe and North America have raised base fares, increased fuel surcharges or added new fees to cover the gap. Airlines are also contending with delayed aircraft deliveries, which force them to keep flying older, more expensive-to-maintain planes.
Wong described the balance between keeping fares high enough to cover costs and low enough to keep passengers flying as a tricky dilemma. He declined to say whether another round of increases is coming, noting that price sensitivity varies from market to market. The strain is already visible in demand: Asia-Pacific passenger traffic fell for five straight months from April to August before edging up in September, though it remains 1.9% higher over the first nine months of the year.
For travelers, the takeaway is to plan as if today’s prices are the baseline rather than a temporary spike. Booking early for peak periods, comparing total fares including surcharges rather than headline base fares, and staying flexible on dates and airports remain the most reliable ways to save. Travelers holding points may also find award redemptions better value while cash fares stay elevated, although fuel surcharges on some award tickets can narrow that advantage.
Sources: Associated Press via KSAT, AsiaOne
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