Average global airfare drops 13% in 7 months: Iata

Average global airfare dropped 13 per cent in US dollar terms during the first seven months of 2015, said global representative body of the airlines.

“In the US dollar terms, average global fares were down 13 per cent in the first 7 months of this year, compared with the year ago period . However, if we hold exchange rates constant to eliminate the translation effect of the stronger US dollar, global fares were down 6 per cent over the same period,” the International Air Transportation Association (Iata) said on Wednesday.

“The US dollar appreciation is exaggerating the downward pressure on fares, but there is still some underlying downward pressure evident,” it added.

Weakness in yields and fares reflects downward pressure from declines in fuel costs and stronger growth in capacity relative to demand in some regions, Iata noted.

Crude oil prices stayed below $50/bbl in September, kept down by expectations of supply increases from Iran and the US as well as a softer demand outlook.

Iata said carriers in all regions experienced capacity expansion on international markets, while on passenger markets there was some contraction in available seats kilometres in Brazil, India and Australia.

 

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