American Express Airfare Index for the Asia-Pacific region shows continued fare increases

The latest American Express Airfare Index for the Asia-Pacific region released today reveals increases in airfares on many routes, particularly those from Australia and Japan. Some modest increases were also recorded on routes from Malaysia, New Zealand, Pakistan, and Taiwan.

According to Kyle Davis, Vice President and General Manager of Business Travel Asia Pacific Australia, American Express, the Third Quarter (Q3) 2004 American Express Asia Pacific Index results confirm First Class and Business Class airfares have continued to increase more rapidly over the past several years than those in other classes of travel.

“The market has seen airlines upgrade their premium products, reduce premium cabin seating numbers and differentially price this enhanced offering. Additionally, there is industry confidence in the long-term growth in passenger demand, which is reflected in a wave of new aircraft orders from a number of Asia-Pacific airlines.”

Several airlines have increased published airfares in response to high oil prices, while others have only introduced a temporary surcharge which is not captured in the published airfare data. In most countries, the current surcharges are adding approximately 2% to 3% over and above the airfare increases recorded in this survey.

First Class and Business Class airfares from Japan increased more than 4% this quarter and Discount Economy airfares from Australia increased 6%. There were some smaller changes in airfares on a number of routes from Malaysia, New Zealand, Pakistan and Taiwan. No significant changes were recorded in airfares in any classes of travel since the Q2’04 survey on routes from Hong Kong, India, Indonesia, Singapore or Thailand.

In Hong Kong, airfares were unchanged between Q3’04 and Q2’04 surveys. Year on year shows increases as follows: First Class 0.4%; Business Class 0.5%; Full Economy 0.3%; and Discount Economy 0.5%.

Each edition of the American Express Asia Pacific Airfare Index measures data across six fare categories including First Class, Business Class, Full Economy, Discount Economy, Lowest Peak-Season Excursion and Lowest Off-Season Excursion. The countries covered by the Index are Australia, Hong Kong SAR China, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Singapore, Taiwan and Thailand.

Class Definitions

First Class – The lowest, generally unrestricted first class fare valid for simple itineraries eg a city-pair return trip.

Business Class – The lowest, generally unrestricted intermediate-class fare valid for simple itineraries.

Full Economy – The lowest, generally unrestricted economy class fare valid for simple itineraries.

Discount Economy – The lowest economy fare generally available to the business traveller. Seats may be limited and an advance purchase of up to seven days may be required. No minimum stay requirement. A cancellation penalty may apply.

Lowest Peak-Season / Off-Season Excursion – The lowest most restrictive fare valid during peak or low season, respectively. Fares may require advance purchase, minimum stay, round trip purchase and may carry significant change / refund penalties. (Peak and low seasons vary between carriers and countries).

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