Business class fares to and from Spain will grow by around +10.5% next year
Premium fares – first, executive or executive – to and from Spain will grow by 10.5% in 2023. It is estimated that the increase in fares on flights within Europe will be greater, while on routes between Europe and North America the increases will be more moderate. Inflation, the impact of interest rates, airline capacity and fuel costs will determine the evolution of ticket prices over the next year.
These are some of the findings of the Air Monitor 2023 report, published by American Express Global Business Travel (Amex GBT), which predicts a general increase in airline ticket prices globally for the next year, due to a combination of factors that already appear in 2022 , especially associated with the Russian invasion of Ukraine, such as high inflation, rising fuel costs, and capacity issues faced by airlines.
differences between regions
The report, produced by Amex GBT’s global business advisory team, provides an annual forecast of the evolution of airline ticket prices on major business travel routes, showing that price changes vary widely by region, with relevance between the two hemispheres.
According to the report, fares on routes between Europe and North America will see moderate increases of around +3.7%, while flights within Europe will see stronger increases of around +6% on business and +5, 5% in economy, due to the fact that The fault lies with the recovery of airline capacity. In the North American market, domestic rates will increase moderately, around +3.4% for business and +2.9% for economy, as capacity increases in 2023.
Particularly in Spain, where inflation peaked at 10.8% in July 2022, and although a drop is expected over the next year, the advisory team estimates that business class fares to and from Spain will increase by around +10.5%. in 2023 due to recovery in demand amid competition and limited capacity
For routes between Asia and Europe, higher fares are expected with increases of around +12% in economy class and +7.6% in business class. Fares for flights between Asia and North America will also see significant increases, from +9.7% in Business Class to +5.6% in Economy Class.
Some countries in the Asia-Pacific region have been slow to reopen following the implementation of COVID-19 travel restrictions, and increased demand, coupled with the relatively strong economic outlook, could put further pressure on prices.
Julie Avnell, vice president of global business consulting for Amex GBT, concluded by highlighting the significant challenge that the volatile economic environment poses to travel planning.