Air fares across Asia Pacific increase 2% in Q2

New Delhi, Aug 20 (UNI) Air fares across Asia Pacific returned to an upward trend with a two per cent increase in second quarter of 2007 compared to flat results in first quarter, according to American Express Business Travel.

The growth in airfares over the second quarter is driven by ongoing increased demand from both leisure and business travellers, reflecting the ongoing positive economic environment in the region, said Mr Kurt Knackstedt, head of American Express business travel advisory services and field effectiveness for Japan, Asia Pacific and Australia.

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, with Asia Pacific carriers demonstrating generally better cost control, he said.

In India, published airfares were down one per cent compared to both the previous quarter and year. While domestic fares fell by two per cent for the quarter, intra-Asia Pacific routes saw a steady increase of four per cent driven by both increasingly mobile leisure travellers and business travellers working across the region, said Mr Kurt.

The American Express business travel monitor identifies trends in air fares within and from Asia Pacific. It is designed for companies to compare the changes in their expenditure against the average published market fare.

UNI