Airfare is expected to continue rising in the future, according to the International Air Transport Association (IATA) during its annual meeting held on June 3, 2024, in Dubai.
One of the main factors behind this increase is the lingering impact of the COVID-19 pandemic, which left many airlines struggling to recover from the global flight bans imposed during the crisis.
Additionally, global inflation, which began during the pandemic, has further contributed to the problem. Inflation has kept fuel prices—accounting for nearly one-third of total airline operating costs—at persistently high levels.
To cope with these financial pressures, airlines have resorted to extending the use of older aircraft, which tend to consume more fuel.
Rising Costs and Sustainable Fuel Challenges
Despite these challenges, IATA’s Director General Willie Walsh stated that airlines are committed to keeping prices as stable as possible in the interest of consumers.
However, Walsh also warned travelers to be prepared for the possibility of further airfare increases, as it is unrealistic for airlines to continue absorbing all of the rising costs indefinitely.
Meanwhile, global efforts to decarbonize the aviation industry are adding pressure, with more airlines competing for access to sustainable aviation fuel (SAF), which remains limited in availability.
