Air fares to rise as crude prices increase

Hyderabad: Air travel prices are expected to scale up by 2.6 per cent globally in 2019. Oil and commodity prices continue to rise and global GDP growth is projected to increase by 3.4 per cent in 2019, according to a report commissioned by Carlson Wagonlit Travel.

“Investments in energy, resources and marine are closely correlated with the price of oil and commodities. Tight crude supplies, exacerbated by the US sanctions against Iran, beginning November 4, are projected to contribute to higher prices. While these factors make forecasting difficult, we project air and hotel prices to rise nearly everywhere in the sector in 2019,” said Raphael Pasdeloup, senior vice-president, CWT energy, and resources and Marine. 

It said there were expectations of an uptick in travel activity overall, companies are likely to stick to their careful ways, booking the lowest available fares, even as airlines pile on the ancillary fees, added Mr Pasdeloup.