Airfares to key destinations like India, the UK, the US, and Europe have surged by 30-50% this year, with no immediate relief anticipated until at least the end of August, Gulf News reported.

According to fare trends from major online travel agencies (OTAs), the ongoing price increase is attributed to the overlap of travel demand during Eid and school vacations, limited airline capacity, and persistent delays in global aircraft deliveries.

The CEO and co-founder of EaseMyTrip, Rikant Pitti, stated that the unusual coincidence of Eid and school holidays, which typically generate high travel demand, is the primary factor behind the rising rates.

“Usually, airfare increases occur separately during school holidays or Eid, but this overlap has heightened demand, resulting in even larger price hikes. Many travelers are heading back to their home countries, while others are exploring European holiday destinations,” he noted.

“Alongside seasonal family trips, popular destinations such as Switzerland, Italy, Thailand, Singapore, Malaysia, South Africa, and CIS countries like Georgia and Armenia remain in high demand,” Pitti said.

Pitti noted that business travel experienced a temporary decline of approximately 30% during Ramadan. However, it is anticipated to pick up again in the third week as the fasting period comes to an end.

Many business travelers are expected to combine their work trips with family vacations, contributing to a steady increase in prices.

Airlines are expanding their capacity to help counteract rising fares by launching new routes and adding more flights, which should gradually ease pricing pressures. For instance, economy fares to New York, currently priced between 6,850 Dirham and 8,850 Dirham, are projected to fall to around 3,030 Dirham in September.

Similarly, flights to London could decrease from 4,500 Dirham to approximately 2,260 Dirham.

Here’s a list of estimated round-trip fares for travel from the UAE between March 31 and April 10:

• Rome, Italy: 3,800 Dirham - 4,800 Dirham
• Zurich, Switzerland: 4,000 Dirham - 5,000 Dirham
• Bangkok, Thailand: 2,500 Dirham - 3,500 Dirham
• Delhi, India: 1,200 Dirham - 1,500 Dirham
• Mumbai, India: 1,100 Dirham - 1,400 Dirham
• Kochi, India: 1,000 Dirham - 1,300 Dirham
• Tbilisi, Georgia: 1,800 Dirham - 2,200 Dirham
• Yerevan, Armenia: 1,700 Dirham - 2,100 Dirham

Despite recent adjustments, airline expansion plans are still hindered by global delays in aircraft deliveries. The International Air Transport Association (IATA) reports that the backlog of new aircraft orders has hit a record high of 17,000 planes, and at the current delivery pace, it would take nearly 14 years to clear this backlog.

Initially, aircraft deliveries for 2025 were projected to be 2,293, but recent estimates indicate a decrease to 1,802, worsening airline capacity issues worldwide.

Airfare trends point to ongoing price pressures. Online travel agency Musafir forecasts a 2-14% rise in global airfares in 2025, driven by increasing fuel costs and inflation. However, corporate travelers are finding creative ways to manage these costs.

“As we enter 2025, corporate travel is more than just logistics; it’s a driver of growth and innovation,” Sachin Gadoya, CEO and co-founder of Musafir.com Sachin Gadoya stated.

The agency noted that popular business-leisure (“bleisure”) destinations like Dubai, Paris, and Sydney continue to be favored for extended corporate trips.

According to an OAG aviation consultancy report, significant reductions in airfares are unlikely in 2025, even though oil prices have dropped to their lowest levels since September 2018.

“In 2025, average airfares are not expected to decrease significantly, as the balance between supply and demand remains critical. Supply shortages, rising operational costs, and a strong US dollar will limit the potential for major reductions,” OAG reported.

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