ACI report highlights inflation, reduced competition, and post-pandemic dynamics driving ticket prices higher.
Post-Pandemic Air Travel Costs Climb
Air travellers across Asia-Pacific and the Middle East are feeling the pinch as airfares continue to rise sharply, according to the 2025 Airfare Trends Report released by Airports Council International (ACI) Asia-Pacific & Middle East. The comprehensive analysis, developed with Flare Aviation Consulting, examines airfare patterns across two of the fastest-growing aviation regions, revealing a combination of inflationary pressures and reduced airline competition as the primary drivers of rising ticket costs.
Despite a robust post-pandemic rebound in passenger traffic, airfares have climbed steadily from 2019 through 2025, reversing the downward trend observed in the five years prior to the pandemic.
“Lowering airport charges does not necessarily translate into cheaper tickets. Instead, policymakers should focus on market liberalisation, open skies, and efficient slot allocation to boost competition while allowing airports to invest in capacity and technology,” said Stefano Baronci, Director General of ACI Asia-Pacific & Middle East.
Regional Variations in Airfare Increases
The report identifies marked differences across regions:
- Asia-Pacific: Airfares have increased by an average of +8% between H1 2019 and 2025, compared with an -18% decline between 2014–2019. The ASEAN and Oceania subregions experienced the steepest rises.
- Middle East: A sharper +15% increase has been recorded over the same period, reversing a previous -9% downward trend.
- Oceania remains the most expensive for air travel, while India and China continue to have fares below the regional average.
- International fares are up 17% above pre-pandemic levels, particularly in Southeast Asia and Developed East Asia.
- Domestic fares, especially on short-haul LCC routes, have surged more than 30% since 2019, disproportionately affecting economy travellers.
Airfares rose 9–28% across all markets, even where airport charges fell below inflation, underscoring that airport fees are only marginally linked to ticket pricing. Markets with limited airline competition saw fares spike up to 13 percentage points above regional averages.
Factors Behind Rising Ticket Prices
The report emphasises that airfare increases are largely market-driven:
- Inflation (CPI): Rising operating costs have contributed significantly to higher fares.
- Reduced airline competition: Fewer carriers on key routes amplify price pressure, especially in domestic short-haul segments.
- Airport charges: While some markets reduced fees, these changes had minimal impact on ticket prices but are essential for airport investments in technology and capacity.
Interestingly, the US–China market remained stable in 2025, showing no major fluctuations, highlighting how competition and policy frameworks can stabilise fares even in volatile times.
The Road Ahead for Air Travel
The 2025 ACI Airfare Trends Report provides a clear lens into the evolving dynamics of air travel in the Asia-Pacific and Middle East, where economic conditions, competition policies, and market recovery intersect to influence ticket prices.
For travellers, this underscores the importance of strategic planning: early bookings, flexible dates, and awareness of regional airfare trends can mitigate the impact of rising costs. For policymakers, the study signals a pressing need to enhance competition and invest in airport infrastructure to ensure sustainable growth in a region increasingly vital to global aviation.
