Sky-high airfares could moderate as demand normalises, more capacity added

AIRFARES have soared amid strong pent-up demand and re-opening of major South-east Asian economies but industry experts expect prices to eventually stabilise as airlines add more capacity and demand normalises.

A combination of factors - booming travel, limited availability of seats, higher fuel costs and easing of travel restrictions - have pushed airfares higher, with flights to popular destinations costing more than pre-pandemic levels.

This contrasts sharply with the super-low fares that were offered by airlines at the peak of the pandemic when travel curbs were in place, said Assistant Professor Terence Fan from the Singapore Management University, who specialises in travel.