International airfares on routes originating from India have increased significantly over the last 12 months in some cases by as much as 29 per cent according to the American Express Asia Pacific Airfare Index.
While first class fares went up by 29 per cent, other segments increased by 12-21 per cent. This is against an increase of around five per cent in the Asia Pacific region in the previous year.
The increase has been attributed to a combination of high jet fuel prices, high load factor and the drive by airlines to obtain higher yields in all classes.
The increase in first class and business class fares has been due to the airlines in the region investing heavily on new equipment and facilities to attract a greater percentage of corporate travellers.
In contrast, the price sensitivity of leisure travellers has minimised the increases on excursion fares. In fact, Japan witnessed a three per cent fall in lowest peak season excursion fares.
Overall, the index reveals that fares throughout the Asia Pacific region rose by an average of five per cent over the last 12 months and an average of one per cent over the last quarter.
