Global airfares are set to rise in 2025

TheStreet’s Conway Gittens explains why it's going to cost you even more to travel in 2025.

Transcript

00:00I'm Conway Gaines reporting from the New York Stock Exchange. Here's what we're watching on

00:03the street today. Buckle up and settle in for higher global airfares in 2025.

00:08That's the prediction coming out of American Express Global Travel Group.

00:12Good news, though, for those who are sticking to economy class within a given continent.

00:17Ticket prices for flights within North America,

00:20Europe or Asia are expected to rise just 3 to 4 percent. While passenger demand is expected to

00:26grow, most of the gain in ticket prices will be tied to limited supply. Smaller planes used for

00:33intracontinental travel are facing production shortages at both Boeing and Airbus. That means

00:39seats will be limited, pushing prices higher. Americans looking to fly abroad will see just

00:46a modest price increase. Ticket prices to Europe or Asia are expected to be relatively flat,

00:52while a ticket to South America is the only region expected to see a drop in prices.

00:58The biggest jump in economy class fares are forecasted for Australia. Prices there are

01:04expected to jump between 12 and 14 percent. That part of the world has been slow to unwind

01:09pandemic-era restrictions. Meanwhile, travel prices between Europe and the Middle East

01:15and between Europe and Asia are both set to rise about 7 percent. No matter where you're

01:20traveling to next year, whether domestic or international, get used to higher or new

01:26extra fees. These fees were recently derided by a Senate committee as, quote,

01:31junk fees. Airlines are piling them on. According to the Department of Transportation,

01:35major U.S. air carriers collected $7 billion in baggage fees alone in 2023. Worldwide,

01:43the industry took in $33 billion, according to one report.

01:48That'll do it for your daily briefing from the New York Stock Exchange.

01:51I'm Conway Gittens with The Street.