International air fares likely to keep rising, says aviation group

International air fares are likely to keep climbing from their current highs over the next 10-15 years, with the cost of sustainable fuels expected to drive up ticket prices, according to the global airlines body Iata. Extraordinary demand for travel since the Covid pandemic has led to steep fare rises on many routes, and Iata said consumers could expect to pay more as airlines increase the usage of scarce “greener” jet fuels in response to government mandates to cut aviation’s carbon emissions. Willie Walsh, the director general of Iata and former CE of British Airways, said: “We’re going to require more and more SAF [sustainable aviation fuel], and that means more and more expense.” While Walsh said that some economists believed sustainable fuels could eventually become cheaper than kerosene, he added: “I see certainty in the next 10-15 years that we’re looking at a significant increase in fuel costs. Unless there’s some compensating reduction in other costs – and I don’t see that – then people have to expect that there will be an increase in in average fares as we go forward.” He added: “It will mean higher fares, because sustainable aviation fuel is more expensive than your traditional jet kerosene. And as we transition to net zero, it is going to cost some money.” Airline costs have been driven up significantly as oil prices soared after Russia’s invasion of Ukraine, as well as higher labour costs. Walsh also pointed to constrained capacity due to a lack of spare parts, which have left some airlines unable to operate their full fleets.<br/>