Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Buckle up and settle in for higher global airfares in 2025, that’s the prediction coming out of American Express Global Travel Group.
Good news, though, for those who are sticking to economy class within a given continent. Ticket prices for flights within North America, Europe, or Asia are expected to rise just 3-4 percent. While passenger demand is expected to grow, most of the gain in ticket prices will be tied to limited supply. Smaller planes used for intra-continental travel are facing production shortages at both Boeing and Airbus. That means seats will be limited, pushing prices higher.
Related: Senate calls out airlines for the 'extra' fees they charge you
Americans looking to fly abroad will see just a modest price increase. Ticket prices to Europe or Asia are expected to be relatively flat, while a ticket to South America is the only region expected to see a drop in prices.
The biggest jump in economy class fares are forecasted for Australia. Prices there are expected to jump between 12 and 14 percent. That part of the world has been slow to unwind pandemic-era restrictions.
Meanwhile, travel prices between Europe and the Middle East, and between Europe and Asia, are both set to rise about 7 percent.
No matter where you’re traveling to next year - whether domestic or international - get used to higher or new extra fees. These fees were recently derided by a Senate committee as “junk fees.” Airlines are piling them on. According to the Department of Transportation, major U.S. air carriers collected $7 billion in baggage fees alone in 2023. Worldwide - the industry took in $33 billion, according to one report.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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