Long haul economy air fares predicted to fall in 2015

Will Green is news editor of Supply Management
22 December 2014

Long haul economy class air fares in Europe are predicted to drop 1 per cent in 2015 against a background of global price falls, according to consultants Advito.

In Asia, Africa and the Middle East prices are expected to fall by 3 per cent, compared with a 2 per cent drop in Latin America and a 1 per cent fall in the Southwest Pacific. In the US they are not expected to change.

For short haul flights economy fares are predicted to rise by 2 per cent in Europe, Latin America and the US, while dropping 3 per cent in Asia, 1 per cent in Southwest Pacific and 4 per cent in both the Middle East and Africa.

Business class fares for both long and short haul flights in Europe are expected to increase 3 per cent. Across other regions they will rise by 2 per cent for long haul, except in Africa where they will increase 1 per cent, and the Middle East where they will drop 1 per cent. For short haul they will fall 3 per cent, except for 2 per cent rises in the US, Latin America and Southwest Pacific.

In its updated 2015 forecast Advito said variations were explained by contrasting economic outlooks and differing levels of demand and capacity, while a fall in the price of oil would not translate into lower fares as “airlines often rely on fuel hedging as a convenient excuse not to bring down prices”.

Hotel prices in Europe, Asia, Southwest Pacific and the Middle East are predicted to rise by 2-4 per cent, and in the UK by 4-6 per cent. In the US they are expected to increase by 6-7 per cent, in Latin America by 5-7 per cent and in Africa by 7-9 per cent.

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