Airfare Surge Across Southeast Asia, Oceania, and the Middle East: India, Vietnam, Thailand, and the UAE Among Hardest Hit, Details You Need to be Aware Of

Written By: Ankita Neogi Khan

Ankita Neogi Khan

With over 15 years of experience in digital media, I bring a strong foundation in language, journalism, and storytelling to travel reporting. A graduate in English (Honours) from Presidency College with a Master's in Journalism and Mass Communication from the University of Calcutta, I began my career as a content curator before transitioning into travel journalism. I specialise in aviation, tourism trends, destination news, and industry insights, combining meticulous research, accuracy, and compelling storytelling to deliver credible, engaging, and insightful content for a global audience.

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October 10, 2025 7:15 AM

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Travelers across Asia-Pacific and the Middle East are facing steeper ticket prices as airfares surge in many markets. In particular, India, Vietnam, Malaysia, Thailand, Australia, United Arab Emirates and several Gulf countries are witnessing sharp increases. This rising cost of air travel is reshaping how people plan trips within and across these regions. The new data from Airports Council International (ACI) underscores that inflation, reduced competition, and airline cost pressures are behind these hikes, rather than airport fees alone. With the headline places India and UAE mentioned in both the title and introduction, readers immediately see which locations are most affected.

Airfare Trends Since 2019 — A Broad Look

Comparing Pre-Pandemic to Now

From the first half of 2019 to the present, airfares in the Asia-Pacific region have climbed by an average of 8 %, reversing a prior trend of falling fares between 2014 and 2019. In the Middle East, the rise is even more dramatic, with fares up by 15 % over the same span.

In the Asia region, Southeast Asia and Oceania have seen the strongest spikes — with fares now 20 % to 30 % above pre-pandemic levels. Meanwhile, in the Middle East, the growth in costs is sharpest where airline competition is weaker. Across the board, international fares are about 17 % higher than 2019 levels; domestic fares have risen even more, particularly on short-haul and low-cost carrier (LCC) routes.

Market-By-Market Insights

Asia-Pacific Domestic Markets

Certain countries have borne the brunt of the increases:

• India: domestic fares jumped ~43 % compared to 2019.
• Vietnam: up ~63 %.
• Malaysia: +36 %.
• Thailand: +26 %.
• Australia: +21 %.

These are some of the nations most reliant on internal air travel, so steeper prices hit hard.

International Fares in Asia

International ticket costs have also swelled:

• India & Vietnam: ~16 % rise
• Malaysia: ~21 %
• Australia: ~14 %
• Thailand: ~7 %

Notably, routes dominated by low-cost carriers have seen sharper escalations, since LCCs have gained influence in pricing.

Middle East Recovery Plus Price Strain

Air traffic in Gulf and Middle Eastern nations has not just recovered — it’s exceeded pre-pandemic levels:

• Bahrain: +24 % in traffic
• Qatar: +27 %
• Saudi Arabia: +30 %
• United Arab Emirates (UAE): +39 %

Yet airfare increases lag traffic growth: UAE fares rose ~22 %, Oman ~10 %, even though passenger volumes are strong.

What’s Driving the High Prices?

Inflation and Fuel Costs

Rising inflation and volatile fuel costs are the main culprits. Since 2019, increases in general price levels and jet fuel have squeezed airline margins and bred price pass-through to travelers.

Weaker Competition on Many Routes

Where only one or few airlines serve a route, fare increases often exceed the regional average by up to 13 percentage points. In contrast, routes with stronger competition have seen more modest increases.

Airport Charges Play a Minor Role

Airport fees and turnaround costs have not kept pace with inflation. In fact, in some places, airport charges have decreased or risen modestly. From 2019 to 2024:

• Domestic airport charges: down ~7 %
• International airport charges: up ~6 %

Hence, those fees are not major drivers of the current airfare surge.

How Travelers Can Respond

• Book early: buying tickets well in advance helps avoid peak pricing.
• Flex dates / times: flying off-peak or midweek may yield lower fares.
• Use multi-airline itineraries: mixing carriers can reduce cost.
• Watch for competition: when new airlines enter a market, fares may fall.
• Leverage loyalty / frequent flyer programs: they can buffer the impact of increases.
• Consider alternate airports: flying out of or into nearby but less busy hubs may be cheaper.

Tourism & Travel Angle — Broader Impacts

The fare surge may dampen intra-regional tourism, especially for price-sensitive travelers. Domestic tourism sectors in countries like India, Vietnam, and Thailand may see reduced momentum if air travel becomes less affordable. On the flip side, there’s opportunity:

• Staycations and regional travel packages could appeal more.
• Promotions and airline fare discounting may reemerge to spur demand.
• Non-air alternatives (train, bus, ferry) may get a boost on certain routes.
• Government policy may step in — subsidized fares, regulated pricing, or incentives to open routes.

Also, as international tourism resumes, countries like UAE may see their appeal moderated if airfare costs remain high. Destination marketing could shift toward promoting longer stays to compensate for the higher travel price.

Next Moves in the Skies

Air travel across Asia-Pacific and the Middle East is in flux. Prices are rising not because of airports, but due to inflation, fuel, and shrinking competition. India, Vietnam, Malaysia, Thailand, Australia, UAE and other places are at the center of this shift. For travelers, agility, timing, and strategy matter now more than ever. The landscape may stay costly for a while — so smart planning is key as airlines, regulators, and tourists all adapt.