Airports Council International Asia-Pacific & Middle East (ACI APAC & MID), the trade association representing airports, has released the 2025 edition of the Airfare Trends for the Asia-Pacific and Middle East regions, highlighting the rising cost of air travel.
Despite substantial recovery of passenger traffic across the region, an increasing trend in airfares is witnessed from H1 2019 to 2025, in contrast to the decreasing pattern observed during pre-pandemic years. The surge is largely driven by inflation (CPI) and reduced airline competition in some key sectors.
Asia Pacific and Middle East witness the biggest increases in airfares
The Asia-Pacific region has witnessed an average +8% increase in H1 2019 to 2025 as compared to an average -18% decrease observed during H1 2014 to 1019. However, the increase reported over the first half of the current year has been much more acute at the country level, especially in the Oceania and ASEAN regions.
The Middle East has seen +15% surge in H1 2019 to 2025 as compared to an average -9% decrease observed during H1 2014 to 2019.
The report once again proves the marginal role of airport charges in driving the changes in airfares. Airport charges and turnaround costs (including government taxes) have generally increased below CPI levels. Interestingly, in markets where airport charges have moderately decreased, airfares have continued their upward momentum.
Key findings
- Airfares have surged across all markets, except China.
- Southeast Asia and Oceania experienced the highest increases, with airfares rising 20% and 30% above pre-pandemic levels, respectively.
- Oceania is the most expensive region for air travel.
- India and China are currently below the regional average in terms of airfare levels.
- International fares increased by 17% above pre-pandemic, especially in Southeast Asia and Developed East Asia.
- Domestic fares surged over 30% above 2019 levels, especially for short-haul LCC routes where reduced competition allows higher pricing.
- Economic travelers bear the biggest share of these increases.
- Routes with low airline competition saw airfares increase up to 13 percentage points above the regional average.
- The US-China market was stable in 2025, with no significant airfare impact.
- Airfares shifts are now largely dictated by inflation (CPI) and airline competition, factors which are outside the airport’s control.
- Airfares increased by between 9% and 28% across the markets in the regions, even in markets where airport charges have decreased.
Stefano Baronci, Director General, ACI Asia-Pacific & Middle East, said: “This study also proves that lowering airport charges does not translate into a reduction in ticket prices, instead, it limits airports’ ability to invest in capacity and technology to enhance service quality.
To make air travel more affordable from a consumer perspective, policymakers should focus on liberalising markets such as open skies, market access and efficient slot policy that can strengthen airline competition while ensuring airports can continue to invest to build capacity to support the growth in the coming years.”
The analysis, developed with the assistance of Flare Aviation Consulting, provides a data-driven perspective, highlighting markets that have experienced notable increases in airfares and examining the factors behind this surge across two of the world’s most dynamic aviation regions.
Rapid growth in airports in Asia Pacific and Middle East
In May this year, ACI also stated that airports across Asia-Pacific and the Middle East are preparing for an exponential growth in air travel, with projections indicating an annual growth of nearly seven percent over the next 25 years. Together, these regions account for 58% of the global aviation market and host nine of the world’s 10 fastest-growing aviation markets.
The Asia-Pacific region witnessed a remarkable 13% jump in overall connectivity compared to 2023, while the Middle East posted an impressive 28% increase, surpassing all post-COVID recovery forecasts. On average, connectivity across all airports rose in both Asia-Pacific and the Middle East by +14%, a strong testament to the resilience and dynamism of the aviation sector.
Photo Credit: Hananeko_Studio / Shutterstock.com
