Global Airfares Expected to Rise by 2025 Due to Staffing Shortages and Wage Increases

According to a recent report by American Express Global Business Travel (Amex GBT), global airfares are projected to increase significantly by 2025. This anticipated rise is primarily attributed to ongoing staffing shortages within the aviation industry and rising wages for airline employees. Airlines face challenges in hiring and retaining qualified personnel, which in turn drives up operational costs.

The airlines need to enhance their workforce amid a surge in travel demand. As more travelers return to the skies, airlines are struggling to meet staffing requirements, leading to increased labor costs. Amex GBT highlights that these staffing challenges are compounded by a competitive job market, where airlines must offer higher wages and better benefits to attract talent.

Additionally, the report notes that rising fuel prices and inflationary pressures are further contributing to the expected fare increases. As operational costs climb, airlines may pass these expenses onto consumers, resulting in higher ticket prices.

The combination of staffing shortages, increased wages, and rising operational costs is set to drive airfares higher by 2025. Travelers need to stay informed about these developments as they may impact their travel budgets in the coming years.