Higher airfares can price out people from flying: IATA Chief Economist

RIO DE JANEIRO: (Jun 8) Airlines will try to hike fares to an extent that they can cover the costs, but depending on which population one is looking at, there will be people who will be priced out of flying as relative price differences will impact choices, a senior IATA executive has said.

The remarks come against the backdrop of airfares rising as airlines seek to recoup some of the costs of the oil price shock due to the West Asia disruptions. Jet fuel prices are expected to be 70 per cent higher in 2026 compared to last year.

The International Air Transport Association (IATA) represents over 370 airlines that account for around 85 per cent of the global air traffic.