Global average economy airfares have already climbed sharply this year, OAG figures show.
By week 11 of the year (around 10 days following the US/Israel attack on Iran), fares were up 24% year on-year, ‘making this one of the sharpest early-year pricing surges in recent memory’, says the data analyst.
Lowest average economy fares were USD460 this year. They are up significantly from their Covid year low of USD293, although down from the USD505 peak at the start of Jan last year.
Soaring fuel prices have meant airlines including Air New Zealand, Qantas and Cathay Pacific are increasing prices and imposing sur charges. Jet fuel prices are up 106% compared to a month ago, according to International Air Transport Association data.
United Airlines CEO Scott Kirby has warned fares could rise by 20% if jet fuel prices remain elevated for longer.
. . .Consumer Warning
In response to soaring costs, Jetstar has followed NZ in cutting back flying, prompting a Consumer NZ reminder of passenger rights.
NZ has trimmed about 5% of domestic and international flying over six weeks and JQ has cut 12% of flights across the Tasman and within New Zealand into May.
Consumer NZ says when a delay or cancellation is caused by something within the airline’s control and passengers don’t want to accept a replacement flight, they can ask for a refund.
Passengers also have the right to claim back additional expenses. “Because it’s a financial decision, we think JQ will struggle to show it took all reasonable measures to avoid the cancellation or delay.’
