Domestic fares on the rise

Domestic fares on the rise
By admin

Domestic airfares increased 5% in the second quarter of 2012 as the resources sector continued to drive the market.

But intra Asia Pacific and America fares remained flat while Europe, Middle East and Africa fares fell 1%, according to the latest American Express Business Travel Monitor.

By fare type, full economy saw the largest increase, 5% quarter over quarter, with discounted economy rising 3% and full business by 1%.

Discounted business class fares remained static.

Carl Jones, head of American express Advisory Services for Asia Pacific, said additional domestic capacity entering the market may have an impact in the second half of the year.

“The continued demand for domestic travel in Australia is being sustained by the resources sector which is why we have seen domestic fares increase 5% over the last quarter,” he said. “We haven’t yet seen the impact that increased capacity from local carriers has had on domestic airfares and it will be interesting to see how domestic fares perform in the last two quarters of the year.”

He attributed the fall in fares to EMEA to an increase in capacity.

Year on year comparisons show domestic fares up 7%, Intra Asia up 2%, EMEA down 3% and the Americas up 15%.

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