Is the Era of Frequent Overseas Travel Ending? "Airfare Will Rise for Several Years"

Increasing Demand for Eco-Friendly Materials Raises Costs Pressure
Ryanair: "The Era of Ultra-Low-Cost Flights Is Over"

As travel demand surged after COVID-19, international airfares have already risen significantly, but the International Air Transport Association (IATA) forecasts that airfares will continue to increase over the next 10 to 15 years.

On the 6th (local time), the British daily The Guardian cited IATA, reporting that additional fare increases due to the expansion of expensive SAF usage driven by governments' eco-friendly policies seem inevitable.

Since the demand for travel has surged after COVID-19, international airfares have already increased significantly, but the International Air Transport Association (IATA) forecasts that airfares will continue to rise for the next 10 to 15 years.
[Photo by Yonhap News]

SAF is aviation fuel made from eco-friendly raw materials such as animal and vegetable oils and urban waste gas, rather than fossil resources like oil and coal. Although it can reduce carbon emissions by up to 80% compared to conventional aviation fuel throughout the entire process from raw material supply to consumption, its production volume is still low and the unit price is high.

Willie Walsh, IATA Secretary General, said, "Airlines will be increasingly required to use more SAF to protect the environment," adding, "This will lead to continuous cost increases."

Walsh further explained, "While sustainable fuel prices may eventually become cheaper than current jet fuel, a significant increase in fuel costs is inevitable for at least the next 10 to 15 years." The expansion of SAF usage, which is more expensive than jet fuel, leads to higher fuel costs, which inevitably results in fare increases.

International airfares have recently risen sharply due to the recovery of travel demand after COVID-19, the rise in international oil prices and labor costs, and a decline in operational rates caused by shortages of aircraft repair parts.

On the first day of the extended holiday for Memorial Day on the 2nd, the domestic departure hall at Gimpo Airport in Seoul was crowded with travelers. Photo by Dongju Yoon doso7@

Earlier, Ryanair, Europe's largest low-cost airline, declared that the era of ultra-low-cost flights had come to an end last year. Amid this, some concerns have been raised that increased SAF usage could reduce air travel demand due to fare hikes.

In the UK’s roadmap for building sustainable aviation to achieve carbon neutrality by 2050, it was analyzed that air travel demand could decrease over the next decade due to cost increases from carbon offset programs, the introduction of high-efficiency aircraft, and expanded SAF usage.

However, airlines stated that air travel demand is still increasing despite high fares. Emirates Airlines reported, "Air travel demand has increased surprisingly, and sales of expensive premium seats have also been strong," adding, "Last winter, demand per seat reached as high as five people."

This content was produced with the assistance of AI translation services.