The annual Air Monitor 2023 report, published by American Express Global Business Travel (Amex GBT), is predicting widespread airfare price hikes on key business travel routes due to inflation, rising fuel costs and capacity issues.
In Asia, price rises are forecast to be sharper, with economy flights to and from Europe up 12%, 7.6% in the business cabin. Asia-North America flights are also slated to see significant rises (5.6% business, 9.8% economy), while Australian domestic flights are forecast to rise 19.4% in the business cabin.
Some countries in the Asia-Pacific region have been slower to reopen after Covid-19 travel restrictions, and an increase in demand combined with relatively strong economic prospects could put an upwards pressure on prices.
Meanwhile, Europe-North America routes are expected to see modest rises of 3.7%, while intra-European flights could see stronger price rises (6% in the business cabin, 5.5% in economy) as airline capacity recovery lags behind the resurgence of demand. North American domestic fares are expected to see moderate rises (3.4% business, 2.9% economy) as more capacity comes online in 2023.
Air Monitor 2023 also identified key trends driving price movements and shaping aviation in the year ahead. These include airline capacity, inflation, and the impact of foreign exchange rates and fuel surcharges. With business travel currently challenged by volatility and disruption, the report offers advice on managing effective air programmes and prioritising the traveller experience.
The Air Monitor 2023 can be downloaded here.