Air fares up as Asian travel rebounds from recession

Asia-Pacific airlines are raising ticket prices as travellers return in their droves after holding back on their travel plans last year because of the global recession.

A strong economic rebound, led by China, has resulted in carriers filling more seats during the summer holidays and demand should remain robust despite slower expansion in the second half of this year, industry analysts said.

Singapore Airlines said it will raise fares on certain routes from October 1, while Korean Air bumped up ticket prices for international passengers by up to 10 per cent in August, its second increase since June.

“Air fares are generally a function of market demand and supply and they are adjusted depending on market conditions,” an SIA spokesman told AFP.

“Actual changes in fares also vary from route to route, and a range of fares is offered in different booking classes.”

While the carrier did not give details of the increases, the local Straits Times newspaper said SIA raised fares by as much as $148 for an economy seat and $742 for a premium ticket.

More than one million travellers visited Singapore in July, crossing the seven-figure mark for the first time ever in a single month, thanks in part to the lure of two new casino resorts in the city-state.

Australian flag-carrier Qantas increased its international and domestic fares on July 28 by three per cent.

“Pricing is reviewed continuously across all routes, taking into account demand and capacity, competitor activity and business performance,” Qantas said in announcing the price hike.