Asian air fares bounce back on increased travel demand

22 Aug, 2007

Average Asian airfares rose in the second quarter of this year as tourists and business visitors travelled more, reflecting the region's economic growth, American Express said Tuesday.
After remaining "flat" in the first quarter, plane fares in the region, including Japan and Australia, rose two percent in the quarter to June 30, according to trends monitored by American Express Business Travel.
The increase reflects "the ongoing positive economic environment," said Kurt Knackstedt, head of American Express Business Travel Advisory Services. "As a result, the Asia Pacific region tends to demonstrate higher and more consistent profitability for its air carriers compared to the European and North American markets," he said in a statement received here.
In India, where competition has increased from low-cost carriers that proliferated in the last four years, average airfares in the second quarter were down one percent.
In China, full and discount economy fares saw the strongest increase for the quarter, largely driven by routes to the Americas that rose 18 percent and 19 percent, respectively.
In Hong Kong, the biggest increases were of six percent and five percent in full first class fares and full business class fares, American Express said. Singapore was the only market to remain flat for the quarter when averaged across all fares, American Express said.

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