The rising cost of air travel has been a prominent issue across major global markets since the pandemic, with the exception of China. Recent reports show that the Asia-Pacific and Middle East regions, in particular, have experienced some of the steepest increases in airfare prices since mid-2019.
According to the Airports Council International Asia-Pacific & Middle East (ACI APAC & MID), the sharp rise in airfares has been attributed to inflation (consumer price index, or CPI) and reduced airline competition, particularly in some key sectors. Their latest ‘Airfare Trends for the Asia-Pacific and Middle East’ study, developed with Flare Aviation Consulting, provides a comprehensive analysis of the issue.
Price Surge Across Regions
Between 2019 and 2025, the Asia-Pacific region saw an average 8% increase in airfares, a stark contrast to the 18% decrease observed in the years prior (H1 2014 to H1 2019). However, the rise has been even more significant in specific markets, particularly in Oceania and Southeast Asia. The Middle East saw a 15% increase in airfares over the same period, compared to a 9% decrease in the pre-pandemic years.
In some areas, airfare prices have surged dramatically. Southeast Asia and Oceania reported price hikes of 20% and 30%, respectively, above pre-pandemic levels. The latter region now holds the title of the most expensive for air travel. Meanwhile, India and China are relatively cheaper compared to the regional average.
Interestingly, the report highlights that airport charges have had only a marginal impact on fare increases. Even in markets where airport fees have dropped, airfares continued to rise. This suggests that factors such as inflation and reduced competition are the primary drivers of cost increases, not necessarily airport charges or turnaround costs.
Domestic and International Fare Trends
International airfares have risen by an average of 17% since the pandemic, particularly in Southeast Asia and Developed East Asia. Domestic fares, especially for short-haul low-cost carrier (LCC) routes, have seen even steeper rises, with increases of over 30% above pre-pandemic levels. Reduced competition on these routes has allowed for higher pricing, which has had a significant impact on economic travellers, who are shouldering the bulk of these fare hikes.
The US-China market, however, remained relatively stable, with no significant increase in airfares through 2025.
The Role of Airline Competition and Policy
The study reaffirms that inflation and airline competition are the most influential factors in determining airfare prices. Despite some markets lowering airport charges, airfares continued to rise, underscoring the limited role of airport fees in controlling costs.
Stefano Baronci, Director General of ACI Asia-Pacific & Middle East, emphasised that reducing airport charges alone would not result in lower ticket prices. He also noted that this practice could potentially limit airports’ ability to invest in capacity and technology, which are necessary to improve service quality and support future growth.
To make air travel more affordable, Baronci suggests that policymakers should focus on liberalising markets, such as implementing open skies agreements and efficient slot policies, to strengthen airline competition. This would allow airlines to offer more competitive pricing while ensuring airports can invest in infrastructure to handle increasing demand.
Conclusion
As air travel has become more accessible, it has facilitated trade, tourism, education, and cultural exchange. However, for many, the rising cost of air travel continues to pose a barrier to these opportunities. The responsibility for making air travel more affordable does not rest solely on airlines or airports; it is a shared challenge that involves governments, technology providers, and the aviation industry as a whole.
Increased affordability in air travel would contribute to the global economy, fostering greater connections between people and cultures. A more accessible air transport system would create opportunities for nations to collaborate and grow together, reinforcing the importance of continued investment in this sector. For more insights on the role of economic policy in shaping markets, see this article on shifting global trade.
