Global Airfares Projected to Rise in 2025

Airfares globally are projected to rise in 2025 due to various factors including increased fuel prices, labor costs, and the introduction of new fees. In India, air travel costs are expected to increase following a recent hike in aviation turbine fuel (ATF) prices, which now account for a significant portion of airline operating costs. The International Monetary Fund's recommendations are prompting Cameroon to reduce fuel subsidies, predicted to raise fuel pump prices and contribute to inflation, affecting consumers. The American Express Global Business Travel report indicates that Asia, especially Australia, will experience the most significant fare increases, while North America and Europe will see more modest rises. Airlines are also facing challenges in increasing capacity due to supply chain disruptions and delays in new aircraft deliveries. As airlines adopt advanced pricing strategies, businesses will need to navigate complex negotiations to secure favorable travel terms.