Airlines bask in sky-high summer fares while airports continue to struggle

Soaring ticket prices are lining the pockets of the world’s biggest airlines, providing balm for the economic wounds suffered during the travel lockdowns of the Covid-19 pandemic. But as the industry takes off, airports say they have been forgotten at the gate. Flying will be far more expensive this summer, according to corporate travel manager American Express Global Business Travel, which analysed tens of thousands of client transactions on international flights to and from Asian destinations. A typical New York-to-Hong Kong flight in economy class cost more than twice as much in 2023 than in 2019, and almost a third more than in 202Major carriers heading to this week’s annual meeting of the IATA have enjoyed a quick recovery. Fares have been bolstered by tight capacity going into travel’s peak season and customers are eager to book, often upgrading to more expensive tickets. British Airways owner IAG posted a surprise quarterly profit in May and raised its outlook for the full year. Dubai’s Emirates and Singapore Airlines reported record earnings, with Australia’s Qantas on course to follow suit. “Airlines have benefited unusually from the supply shortfall that boosts the price” of tickets, said Bloomberg Intelligence analyst Denise Wong. Airports, meanwhile, continue to struggle, lacking the same flexibility to raise prices on fees and tariffs that are fixed, regulated or commercially negotiated. London Heathrow, the home base of BA, has warned of ongoing losses and is withholding dividend payments to its owners. Dublin Airport is also wrestling with regulators and airlines on the increase in fees it can charge airlines. Irish low-cost powerhouse Ryanair Holdings, a major tenant, routinely threatens to leave over such costs. The discount carrier has also scaled back in Germany, saying high airport fees there make operations unsustainable at airports like Frankfurt.<br/>