Airlines bask in sky-high summer fares while airports stay stuck

Airlines bask in sky-high summer fares while airports stay stuck

Soaring ticket prices are lining the pockets of the world’s biggest airlines, providing balm to the economic wounds suffered during the travel lockdowns of Covid-19. But as the industry takes off, airports say they’ve been forgotten at the gate. Flying will be far more expensive this summer, according to corporate travel manager American Express Global Business Travel, which analysed tens of thousands of client transactions on international flights to and from Asian destinations. A typical New York-to-Hong Kong flight in economy class cost more than twice as much this year as in 2019, and almost a third more than last year. Major carriers heading to this week’s annual meeting of the International Air Transport Association have enjoyed a quick recovery. Fares have been bolstered by tight capacity going into travel’s peak season and customers are eager to book, often upgrading to more expensive tickets. British Airways owner IAG SA posted a surprise quarterly profit last month and raised its outlook for the full year. Dubai’s Emirates and Singapore Airlines reported record earnings, with Australia’s Qantas on course to follow suit. “Airlines have benefited unusually from the supply shortfall that boosts the price” of tickets, said Bloomberg Intelligence analyst Denise Wong.