Airfares will rise globally in 2023

This was reported by Bloomberg with reference to American Express Global Business Travel data.

By destination, airfares will increase on Europe-Asia routes by 12% and on North America-Asia routes by 10%.

The main drivers of the price increases are inflation, rising fuel costs and capacity constraints.

The report states:

The increase in fares between Europe and Asia also reflects the impact of changing routes to avoid Russian airspace, which is closed to many airlines following the invasion of Ukraine. The diversions could increase flight times by three hours, leading to increased fuel consumption and costs.

The increase will not be as steep in North America, where fares will rise by around 3%. Fares on the North America-Europe route will be 3.7% higher than in 2022.