Ticket prices rising despite troubles
A survey of airline fares in Asia has found that overall passenger fares have increased since the September 11 terrorist attacks in the United States.
American Express Consulting, an arm of the United States-based consumer finance and travel group, said in the latest update of its quarterly airfare index that fares have continued to rise despite the industry's troubles.
That fares continued to rise is partly due to a need to offset plummeting passenger numbers, the survey found.
'Business travel fares - the most profitable segment for airlines - are having to make up the shortfall on a much reduced leisure market, where fares have fallen beyond seasonal allowances in the face of intense competition from 'low-cost' carriers and the introduction of 'headline grabbing' promotional fares,' said Jim Georges, the company's director of Asia-Pacific consulting.
In Hong Kong, first and business class fares in the fourth quarter of the year increased 3.6 per cent and 3.8 per cent respectively, from third quarter levels.
While full economy and discount economy fares remained unchanged overall, the lowest peak-season and lowest off-season excursion fares rose 1.4 per cent.
For the Asia-Pacific region overall, first class fares rose 3 per cent in the fourth quarter while business class fares rose 2 per cent.
Discount economy fares increased 2.4 per cent, while lowest peak-season and off-season excursion fares increased 3.2 per cent and 3 per cent respectively.
The survey found fares in the region have risen for seven consecutive quarters.
It said the terrorist attacks and the collapse of Australian airline Ansett actually helped sustain the price increases of the present quarter.
Business class fares had the fastest growing index in the Asia-wide survey, rising 17.9 per cent over the past three years. First class fares recorded the second-fastest increase of 17.5 per cent over the same period.
By comparison, discount economy fares across Asia have risen only 9.1 per cent.
