Latest news with #airfares
Reuters
17 hours ago
- Business
- Reuters
HK Express airfares dragged down by rising competition out of Hong Kong, CEO says
NEW DELHI, June 3 (Reuters) - An accelerating fall in the price of air tickets from recent high levels is the biggest challenge at Cathay Pacific's ( opens new tab budget arm HK Express, its CEO said, as competition rises after a third runway opened at Hong Kong's airport. Many airlines, including HK Express and its low-cost rivals, are capitalising on the third runway that opened in November to add more flights, CEO Jeanette Mao told reporters on the sidelines of the IATA annual meeting in New Delhi. HK Express was the world's fastest-growing airline last year, with flight frequencies up 46% from 2023 according to aviation data firm OAG, and it expects to grow by more than 30% this year, according to Mao. "But of course such aggressive growth in the supply also added pressure on the yield side," she said. HK Express annual yield, a proxy for airfares, fell 23% year-on-year in 2024, mainly due to intense price competition on regional routes pushing airfares down. Yields at Cathay Pacific's full-service airline were down 12%. Airfares in Asia are coming down from post-pandemic record highs as the region's airlines continue to restore seat capacity. Asia's air travel recovery has lagged the rest of the world due to China and Hong Kong being slower to return to international flying after COVID-19. Last year, capacity between Hong Kong and short-haul destinations surged by almost 40%, so fares from Hong Kong to Southeast and Northeast Asia are under pressure, Mao said. Some Asian rivals with lower-cost home bases are using "fifth-freedom" rights, which have been allowed for many years in Hong Kong, to fly routes from the city to destinations outside the foreign airline's home country, directly competing with HK Express routes, Mao said. For example, Thai AirAsia in June launched a Bangkok-Hong Kong-Okinawa route. Another drag on HK Express has been the grounding of Airbus ( opens new tab 320neo planes due to industry-wide issues with their Pratt & Whitney engines, Mao said. Half of the 10 A320neos in its fleet are still grounded, she said, adding there was not a definite timeline of when the issue can be resolved. The situation is improving but the airline needs more clarity from the engine manufacturer "to regain the confidence for our recovery aircraft reactivation", she said. Pratt, owned by RTX (RTX.N), opens new tab, did not immediately respond to a request for comment.
Khaleej Times
19 hours ago
- Business
- Khaleej Times
UAE flights: Ticket prices up by 60% on peak travel day amid Eid Al Adha break
As UAE residents gear up for the upcoming Eid Al Adha break, travel demand to Arab and regional destinations is soaring, as are ticket prices. According to Bharat Aidasani, Managing Partner at Pluto Travels, airfares to Arab destinations have surged by up to 60 per cent during the Eid Al Adha holiday period as demand continues to outpace supply. "Because of the peak season, people love to travel, especially in the summer and during holiday times like Eid," Aidasani said, highlighting a consistent rise in travel demand. According to Aidasani, prices for flights to these destinations have risen between 20 to 30 per cent, with peak-day travel costs increasing by as much as 40 to 60 per cent. 'Airlines also get geared up for Eid. They start additional flights and open new routes wherever demand rises.' Arab destinations remain in high demand. Egypt continues to attract many UAE residents, while Syria is witnessing a surge as Syrians living in the UAE return home to celebrate Eid. Lebanon remains a consistent favorite, and Saudi Arabia sees increased traffic due to Hajj and Umrah pilgrimages. Praveen Choudhary from Al Saffron Travel and Tourism agrees and adds that Egypt and Morocco are among the Arab destinations with the highest surge in bookings this Eid. "We're seeing a major influx in Egypt visa applications during the holiday period," said Choudhary, noting a significant increase in demand from UAE residents and expats alike. Choudhary emphasised the importance of early booking to avoid steep price hikes. "If you book 40 to 45 days in advance, the price could be nearly half what it is now. For example, a ticket priced at Dh500 earlier might now be over Dh1,000." Zain Al Abdin, sales manager at Golden Eagle Travel & Tourism, added that airlines have ramped up operations to accommodate the surge. For example, 'Syrian Airlines used to be the only carrier flying to Syria, but now FlyDubai and Emirates are adding flights. Yet prices have increased by around 50 per cent,' Al Abdin said. Travellers who book last-minute tickets often face higher fares, especially for non-flexible or non-refundable ticket categories. 'About 90 per cent of the tickets people book are non-refundable,' he explained. With limited flexibility, travellers are often locked into dates set by public sector holidays. Different travel behaviours Compared to last Eid, bookings this year are strong but slightly lower. 'This is mainly due to the overlap of Eid holidays with school exams. Many families are delaying their travel until after Eid,' Al Abdin explained. Some families prefer spending the same budget on more extended post-Eid vacations rather than shorter, more expensive Eid getaways. 'A three-day Eid trip might cost Dh4,000 per person now. Some prefer to wait until after exams and spend Dh7,000 on a full summer trip instead,' he said. Travel after Eid is expected to be more affordable and appealing for long-haul trips. 'After Eid, prices will drop, especially for longer destinations like Europe, Russia, and northern Turkey,' he added. Looking at global destinations, Al Abdin pointed out that travelers prefer short-haul trips during Eid, such as Azerbaijan, Georgia, and Istanbul. "For long-haul destinations like Europe, Russia, North Turkey, Japan, Korea, or Norway, people wait for the summer holiday season."
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
AirAsia MOVE denies manipulating airfares, blames 3rd-party glitch
AirAsia MOVE is owned by Capital A Bhd, which also owns budget carrier AirAsia. (EPA Images pic) PETALING JAYA : AirAsia's online travel booking platform has denied setting or manipulating airfares after the Philippines ordered the website to stop operating in the country over price discrepancies. AirAsia MOVE said the platform only displayed flight inventory and prices provided by authorised upstream suppliers, adding that this included third-party aggregators and global distribution systems. 'The discrepancies in fare displays for certain routes, including domestic flights operated by Philippine Airlines, were caused by temporary data synchronisation issues with flight pricing partners. 'This technical discrepancy caused by the third-party provider is not isolated to MOVE as it also affected other booking platforms across the industry, including Agoda, and Traveloka. 'Upon identifying the issue, MOVE took immediate steps and brought up the matter with the third-party pricing provider for immediate resolution. 'MOVE also took steps to further enhance safeguards to prevent any future recurrence,' it said in a statement. It said it was working closely with the Philippine authorities and maintained that it was fully compliant with all regulatory requirements. 'MOVE welcomes the opportunity to proactively engage with relevant authorities to provide clarity on the issue and asks for due process to take its course for the benefit of all passengers booked via the platform.' Earlier, Philippine transportation secretary Vince Dizon said AirAsia MOVE's website was taken down following a cease-and-desist order by the Civil Aeronautics Board. This followed complaints that the platform was charging high airfares illegally. Dizon said the authorities will also file a 'criminal economic sabotage' case against AirAsia Move. The platform had reportedly charged 77,000 pesos, or about RM5,880, for a one-way Philippine Airlines flight from Manila to Tacloban City, which was triple the price quoted when directly booking with the airline.
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
Philippines orders AirAsia MOVE shutdown on excessive pricing
During the weekend, AirAsia MOVE charged US$1,380 for a one-way ticket from Manila to Tacloban City via Philippine Airlines. (Air Asia pic) MANILA : The Philippines has ordered AirAsia's digital platform to stop selling airline tickets in the country following complaints it charged illegally high fares. 'The authorities have asked the police to take down AirAsia MOVE's website as part of a cease-and-desist order by the Civil Aeronautics Board,' transportation secretary Vince Dizon said at a press conference today. The aviation agency, which sets price ceilings for airfares in the country, says the company hiked its prices following transportation troubles in Tacloban City due to the closure of a key bridge to trucks. 'We will really put the full force of the law on these unscrupulous online platforms who are taking advantage of our people,' Dizon said. 'Authorities will move to immediately file a case for 'criminal economic sabotage' against the digital platform, which is owned by Capital A Berhad,' Dizon added. Malaysia-based AirAsia MOVE, which is an affiliate of budget carrier Philippines AirAsia, didn't immediately respond to a request for comment. During the weekend, AirAsia MOVE charged ₱77,000 (US$1,380) for a one-way ticket from Manila to Tacloban City via Philippine Airlines, three times the price quoted when directly booking in the flag carrier's website, transportation ministry data show. 'Clearly, this is just absurd,' Dizon said at the briefing. 'What AirAsia MOVE is doing is criminal,' he added.
South China Morning Post
2 days ago
- Business
- South China Morning Post
Philippines slams Malaysia's AirAsia for ‘criminal' ticket prices, shuts down website
The Philippines has ordered AirAsia's digital platform to stop selling airline tickets in the country following complaints it charged illegally high fares. Advertisement The authorities have asked the police to take down AirAsia MOVE's website as part of a cease-and-desist order by the Civil Aeronautics Board, Transportation Secretary Vince Dizon said at a press conference on Monday. The aviation agency, which sets price ceilings for airfares in the country, says the company raised its prices following transportation troubles in Tacloban City due to the closure of a key bridge to trucks. What AirAsia MOVE is doing is criminal Philippine Transportation Secretary Vince Dizon 'We will really put the full force of the law on these unscrupulous online platforms who are taking advantage of our people,' Dizon said. Authorities will move to immediately file a case for 'criminal economic sabotage' against the digital platform, which is owned by Capital A Berhad, Dizon added. Malaysia -based AirAsia MOVE, which is an affiliate of budget carrier Philippines AirAsia, did not immediately respond to a request for comment. Philippine Transportation Secretary Vince Dizon speaks to the media last month. Photo: Reuters At the weekend, AirAsia MOVE was charging 77,000 pesos (US$1,380) for a one-way ticket from Manila to Tacloban City via Philippine Airlines, three times the price quoted when directly booking in the flag carrier's website, transportation ministry data showed.
