Warning: Airfares Expected to Continue Rising, Say Trade Group and Industry Heads
Dubai: As the International Air Transport Association (IATA) convened its annual meeting in Dubai, industry leaders cautioned that airfares are likely to keep climbing. Mounting expenses, including high jet fuel costs and global inflation, are key factors driving this trend. Additionally, the push for decarbonization has intensified competition for sustainable aviation fuel, further pressuring costs. With aircraft production lagging post-pandemic, airlines are forced to operate older, less fuel-efficient planes, exacerbating the situation. Despite record-high revenue projections for 2024, reaching nearly $1 trillion, and anticipated profits of nearly $60 billion this year, the industry faces challenges in balancing costs and consumer affordability.