Intercontinental business fares continue to climb, especially between North America, Europe and Asia.
But domestic economy fares in the US are falling, driven by low-cost carrier competition and weakening demand.
This is according to Advito’s quarterly Travel Price Index outlining global trends across business travel.
Key takeaways from the report include:
Air Price Index Q2 2025
In Europe, domestic and regional fares are rising in economy, which accounts for most European air traffic.
A reduction in domestic capacity to key countries – Germany, France, UK – is primarily driven by the development of high-speed rail
Intercontinental airfares are rising due to increased corporate travel and interest in booking premium cabins, driving fare increases in business
Delays in aircraft deliveries and maintenance issues are leading to enforced capacity restrictions, impacting airline growth.
Geopolitical tensions have an impact on intercontinental airline networks and can contribute to fare rises, especially from/to Europe, the Middle East and Asia
There are mixed trends in domestic and regional fares in economy cabins.
In the US, economic concerns in the domestic market are affecting demand
A highly-dynamic Asian market has seen double digit increase in seat capacity, more availability of lower fares and a reduction in average fares
Overall, airfares from Africa to almost all regions worldwide are increasing year-over-year
Gulf carriers are taking advantage of the reduction of operations from European carriers and the Indian market boom, increasing fares from the Middle East.
