Airfare trends 2025 shows inflation and competition drive higher fares, not airport charges

Airports Council International Asia-Pacific & Middle East (ACI APAC & MID) has released the 2025 edition of Airfare Trends for the Asia-Pacific and Middle East, developed with Flare Aviation Consulting. The report highlights a continued rise in air travel costs across two of the world’s most dynamic aviation regions.

According to the study, airfare variations are primarily influenced by macroeconomic factors such as inflation and airline competition, rather than airport charges. Despite substantial recovery in passenger traffic, average airfares have continued to climb since 2019, reversing the downward trend seen before the pandemic. Across the Asia-Pacific region, fares increased by 8% between the first half of 2019 and 2025, compared with an 18% average decline from 2014 to 2019. In the Middle East, fares rose 15% over the same period, reversing a previous 9% drop.

Oceania recorded the sharpest increase, with airfares 30% above pre-pandemic levels, making it the most expensive region for air travel. Southeast Asia followed with a 20% rise. In contrast, India and China remained below the regional average, with China the only market not experiencing a significant increase. International fares are now 17% higher than before the pandemic, especially in Southeast Asia and Developed East Asia, while domestic fares have surged more than 30%, particularly on short-haul low-cost carrier routes where reduced competition enables higher pricing.

The analysis reaffirms that airport charges have played only a marginal role in these changes. Both airport fees and turnaround costs, including government taxes, have increased below consumer price index levels. In some markets where airport charges have even decreased, airfares have continued to rise. Routes with limited airline competition saw fares climb up to 13 percentage points above the regional average.

The US–China market remained stable in 2025, with no major fare impact. Overall, airfares increased between 9% and 28% across markets, underscoring the influence of inflation and competition—factors outside airports’ control.

Stefano Baronci, Director General of ACI Asia-Pacific & Middle East, said: “The objective of this analysis is to assess the market dynamics and its impact on aviation, as well as provide transparency into the rising cost of air travel. This study also proves that lowering airport charges does not translate into reduction in ticket prices, instead, it limits airports’ ability to invest in capacity and technology to enhance service quality. To make air travel more affordable from a consumer perspective, policymakers should focus on liberalising markets such as open skies, market access and efficient slot policy that can strengthen airline competition while ensuring airports can continue to invest to build capacity to support the growth in the coming years.”

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