High airfares are here to stay after post-pandemic boom: AirAsia CEO

"It's not high prices, it's real prices," Fernandes said. "I think the fares you're seeing now are really what you should have seen in 2019 as well"

Peter Vercoe and Haslinda Amin | Bloomberg
Tony Fernandes, CEO, Capital A  (Photo: Bloomberg)

Tony Fernandes, CEO, Capital A (Photo: Bloomberg)

High airfares are here to stay as airlines take advantage of the post-pandemic travel boom to lock in higher charges, Capital A Chief Executive Officer Tony Fernandes said.
“The fare environment is very good,” Fernandes said in an interview with Bloomberg Television on Tuesday from the sidelines of the Aviation Festival Asia in Singapore. “I think airlines have always underpriced their product. People are getting a little bit of a shock because they see prices a bit higher, but really we’ve been behind the curve on that as an industry.” 

Airlines around the world have pushed up fares as demand outstrips supply following rapid rebound in travel after years of pandemic-era restrictions and as carriers struggle to get planes back in the sky.
“It’s not high prices, it’s real prices,” Fernandes said. “I think the fares you’re seeing now are really what you should have seen in 2019 as well.” 

“After not having traveled for three years, peoples’ value of travel has also gone up,” he added. “If you don’t have it for three years, you see how important it was.” 
AirAsia will have its entire fleet of more than 200 planes back in service a year earlier than initially planned, Fernandes said. 

Also Read

AirAsia offers 5 million free seats to celebrate its rapid comeback

AirAsia exits AirAsia India, sells 16.33% stake to Air India for Rs 156 cr

Flying on time: TCS-developed app powers AirAsia India's punctuality record

65% of passengers want cap on airfares, says LocalCircles survey

Cash crunch pushes AirAsia India to take short-term loans of Rs 630 crore

No refinancing, capital plans at HK roadshow, says Adani Group CFO

Top headlines: Apple creates new jobs, India's derivate bond trade at risk

Singapore Airlines to get 25.1% stake in enlarged Air India group

With new tagline, Pepsi ropes in Ranveer Singh as its new brand ambassador

Paytm shareholding changes: Ant exceeds 25% mark, MFs increase their stake

“The main obstacle for us has been getting our planes back into service, and bringing 204 planes back is no mean feat,” he said. “And what was initially predicted to be finished by May of next year we’ll do by May of this year.”

First Published: Feb 28 2023 | 9:51 AM IST

Explore News