Airlines Predict Price Hikes for 2025, Particularly in Asia and Australia

Airfares around the world are expected to rise in 2025, with ticket prices reflecting both higher operational costs and ongoing supply chain disruptions, according to a forecast from American Express Global Business Travel Group, as reported by Bloomberg. While the price increases are predicted to be moderate compared to the sharp hikes seen following the pandemic, most routes will still see price adjustments. However, these increases will vary greatly depending on the region. North America and Europe are likely to experience more modest price rises of about 2%, while Asia and Australia, regions that had delayed their post-pandemic reopenings, may face increases of up to 14%.

The anticipated fare hikes come as airlines, despite growing optimism about demand, struggle to expand capacity. Delays in aircraft deliveries from Airbus and Boeing, coupled with extended engine maintenance schedules, are limiting the number of planes available for service. These factors, along with ongoing labor shortages and disputes—especially in North America—are contributing to the higher costs.

The rise in airfares in 2025 is expected to erase the lower fares seen before 2024, with some ticket prices potentially reaching pre-pandemic levels. Higher wages, fuel costs, and geopolitical tensions are also cited as key drivers behind the fare increases. Budget airlines are also adding new surcharges and investing in upgrades such as better seating and exclusive airport lounges. In particular, routes between Europe and Asia will see significant increases, with economy class tickets rising by 6.6% and business class fares climbing by 8.2%. These increases are largely attributed to higher operating costs associated with avoiding Russian airspace and a reduction in European...