Air fares soar above inflation as carriers cash in on travel demand

Air fares are rising at more than twice the rate of inflation, as carriers cash in on soaring demand for travel that has defied broader economic headwinds. Average ticket prices on more than 600 of the world’s most popular routes rose at an annual rate of 27.4 per cent in February, the latest month for which data is available, marking the fifteenth consecutive month of double-digit growth, according to a Financial Times analysis of data from aviation company Cirium. By contrast, US inflation, a proxy for global inflation in developed economies, has grown at less than half that over the same period. The data analysed prices on popular routes flown across the world and used average one-way fares in economy, excluding taxes and fees. It found significant price rises across many routes this year, compared to pre-pandemic levels. The average one-way economy class transatlantic flight from London Heathrow to New York’s JFK was $343 in February this year, 23% higher than in the same month in 2019. Fares between New York and Singapore were 45% higher at $887, while Dubai to Frankfurt tickets were 51% up at $360. Sixty routes with at least one leg in North America out of a total of more than 300 routes have set new highs in the past 12-months, including seven setting a new peak in February. Fares between Miami and Bridgetown, Barbados grew 126 per cent in the year to February and ticket prices between Los Angeles to Mexico City International almost doubled — the highest year on year changes in air fares since at least 2014, the first year for which data is available. Passengers’ willingness to pay high fares underlines the furious rebound in demand for flying over the past year, and how airlines are enjoying a sharp turnaround in fortunes following the pandemic.<br/>