TORONTO — After two years of airfare sticker shock, travellers can expect more modest increases for the price of air travel in 2025. That’s the word from American Express Global Business Travel’s latest Air Monitor 2025. The annual report drills down on the costs of travel region by region.
According to the report, airfares will rise just slightly across most regions globally in 2025 as airline capacity continues to rise, putting more supply in the market. The report anticipates that, after a period of sharp fluctuations, airfare prices are starting to stabilize globally. “THE UNDERLYING COST OF AIR TRAVEL IS LIKELY TO REMAIN HIGH” Next year’s price points should mark a shift from the more volatile pricing patterns of previous years, noted the report.
“However, despite these stabilizations, the underlying cost of air travel is likely to remain high,” said Amex GBT. The report underlines the biggest factors influencing airfare pricing, includimg the growing trend of dynamic pricing, which allows airlines to adjust their fares based on a variety of market conditions. The years-long integration of IATA’s New Distribution Capability (NDC) meanwhile impacts fare negotiations between airlines and corporate travel buyers.
The report also notes that geopolitical tensions can affect fuel costs, plus increased operating expenses (like higher labour costs from new contracts and environmental surcharges) add to upward pressure on prices as well. Amex GBT’s forecast sh.
