Amex GBT forecasts flattening air fares
Airfares look set to stabilise across key routes around the world during 2024, according to new forecasts from the consulting team at American Express Global Business Travel (Amex GBT)
Air…
Airfares look set to stabilise across key routes around the world during 2024, according to new forecasts from the consulting team at American Express Global Business Travel (Amex GBT)
Air Monitor 2024 expects marginal price rises, and some falls, on regional and international business travel routes.
Across all regions, airfare fluctuations reveal mixed trends – with a broad outlook of increased price stability in 2024.
North America is expected to see minor changes in fares within the region (less than 1%) and to Europe (+0.3% business class, -2.5% economy), while airfares to Asia are projected to decline in 2024.
Flights within Europe are projected to rise around 1%, with declines in prices between Europe and the Middle East (-3.5% business class, -2.8% economy) and South America (-3.9% business class, -10.4% economy). All price movements are versus 2023 prices.
Amex GBT forecasts
The 2024 landscape Airlines reported record earnings in 2023 resulting from robust demand, high fares, and a drop in the price of jet fuel.
However, leisure travel, which boosted 2023 revenues thanks to ‘revenge tourism,’ is expected to slow down in specific areas as consumer preferences fall prey to high interest rates. Simultaneously, rising oil and jet fuel prices since June 2023 are exerting pressure on carriers, and adding to the cost burden.
Despite strides in rebuilding balance sheets through 2023, the aviation industry continues to grapple with substantial debt burdens. Increasing labor expenses worldwide are coupled with a scarcity of talent in specific areas.
Ongoing supply chain issues are anticipated to persist, potentially delaying new aircraft production and impacting expansion plans.
“While the expected softening of fare rises is good news for our customers, sourcing for corporate travel programs remains a challenging environment,” said Dan Beauchamp, head of consulting at Amex GBT.
“We are helping customers deploy smarter strategies as they navigate the changes and drive value for their organizations. Meanwhile, I believe the Air Monitor 2024 report is a useful industry resource for gaining better understanding of many factors influencing the air pricing landscape.”
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