Airfare Prices Soar Through the Roof... "They Will Continue to Rise"

Peak Season Airfare Price Increase Trend During Vacation Period
"Supply Shortage + Facility Investment Costs Reflected in Tickets"

With the vacation season approaching, global airfare prices are expected to rise even further. Not only have prices increased due to a shortage of passenger supply, but analysts also suggest that airfare hikes could accelerate as airlines invest in facility costs following the COVID-19 pandemic.

On the 5th (local time), Bloomberg cited the forecast from American Express Global Business Travel (AMEX GBT), which analyzes international flights to Asia, reporting that "airfare prices during this summer's peak season will become more expensive."

Although international air routes that were closed due to COVID-19 are recovering, the prices of flights that consumers feel remain at a high level.
[Photo by Yonhap News]

In fact, airfare on routes connecting major Asian cities with the US and Europe far exceeds pre-pandemic levels.

The price of flights between New York, USA, and Shanghai, China, for economy class is 128% higher compared to 2019, while business class fares have increased by 83%.

Economy class fares between New York and Hong Kong are more than double those in 2019 and over 33% higher than last year.

Seats between New York and Hong Kong have risen by 115% for economy and 31% for business compared to four years ago. During the same period, airfare connecting Paris, France, and Tokyo, Japan, increased by 69% for economy and 26% for business.

Economy seats on the Taipei, Taiwan to Amsterdam, Netherlands route rose by 53%, and on the San Francisco, USA to Singapore route by 39%.

International airfare prices are expected to continue rising.

Bloomberg reported, "As the travel peak season approaches, airlines, airports, and various ground service providers are increasing hiring and expanding facility investments to prevent disruptions." It added, "These costs are likely to be eventually included in airfare."

Domestic Airlines’ Fares More Than Double Compared to Pre-Pandemic

On the first day of the extended holiday for Memorial Day on the 2nd, the domestic departure hall at Gimpo Airport in Seoul was crowded with travelers.
[Photo by Dongju Yoon doso7@]

Domestic airlines have also significantly raised airfare prices compared to before the pandemic.

According to Naver Airfare as of the 19th of last month, round-trip direct flight tickets between Incheon and Narita during the golden holiday period in May were priced in the 500,000 KRW range. This is more than double the price compared to 2019, before the pandemic.

Causes include the sharp rise in various ancillary costs due to inflation and the longer time required for crew members and maintenance staff who left airlines during the pandemic to return.

The government’s target to restore international flight operations to about 90% of pre-pandemic levels is set for September, so airfare prices are expected to continue soaring through the summer peak season.

However, on short-haul routes such as Japan and Southeast Asia, low-cost carriers are aggressively increasing seat capacity, raising the possibility of prices dropping sooner.