Air Fares Expected to Hike on Rise in Demand

Air Fares Expected to Hike on Rise in Demand

On back of strong demand from holiday makers and vacationers, airlines are expected to continue raising ticket prices, in a move which is sure to help the ailing sector recover from one of the worst global recessions that the world has ever seen.

Travel agents have reported a huge jump in bookings during the pre-Christmas period, as more confident customers look to make the most of the heavily discounted fares being offered everywhere.

With a stronger demand, Qantas, Jetstar, and Singapore Airlines-owned Tiger Airways are also adding more capacity to more sought after routes and pulling the same back from routes where the demand is low.

''What we're seeing, I think, is the airlines pushing for yield in the holiday period. f consumers are expecting those sort of [heavily discounted] levels to re-emerge over January-February, I don't think there is any likelihood of that", said Managing Director of the travel website Webjet, David Clarke.

It has been estimated that ticket prices could hike by up-to 10% by April, which would be in addition to a 7% rise in fares over the past few months.