Southeast Asia airfares up 20% over pre-pandemic levels. Photo Credit: iStock/simplehappyart
As swelling business events optimism continues to be tempered by cost concerns, a new report has revealed that airfares in Southeast Asia (+20%) and Oceania (+30%) have experienced the sharpest increases over pre-pandemic levels.
Airports Council International (ACI) Asia-Pacific & Middle East’s 2025 Airfare Trends report shows an increasing trend from H1 2019 to 2025, in contrast to the decreasing pattern observed during pre-pandemic years.
The surge is largely driven by inflation and reduced airline competition in some key sectors.
Asia-Pacific region has witnessed an average +8% increase in H1 2019 to 2025 as compared to an average -18% decrease observed during H1 2014 to 1019.
The increase reported over the first half of the current year has been much more acute at country level, especially in the Oceania and ASEAN regions.
The findings “once again prove the marginal role of airport charges in driving the changes in airfares”, according to ACI.
“Airport charges and turnaround costs (including government taxes) have generally increased below CPI levels. Interestingly, in markets where airport charges have moderately decreased, airfares have continued their upward momentum,” ACI highlighted in a press release.
Other findings include:
Airfares have surged across all markets, except China.
Oceania is the most expensive region for air travel.
India and China currently below the regional average in terms of airfare levels.
International fares increased by 17% above pre-pandemic, especially in Southeast Asia and developed East Asia.
Domestic fares surged over 30% above 2019 levels, especially for shorthaul LCC routes where reduced competition allows higher pricing.
Economic travellers bear the biggest share of these increases.
Routes with low airline competition saw airfares increased up to 13 percentage points above the regional average.
Stefano Baronci, director general, ACI Asia-Pacific & Middle East, noted: " 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."