Airfare Prices Set To Drop Further In 2015

$1,800 return to London? Tell 'im he's dreamin'.

Someone must have, as the world's peak global aviation body has predicted further decline in the worldwide prices of flights for 2015.

Despite having already lowered in previous years, the International Air Transport Association (IATA) has declared that the average cost of return airfares will drop about 5.1% compared to 2014 prices.

 It's expected to cost travellers even less money to see the world

These reductions have been linked to new efficiencies and lower industry costs including the price of oil, considered one of the main reasons behind increased profits for global airlines.

"It's a highly competitive industry and consumers – travellers as well as shippers – will see lower costs in 2015 as the impact of lower oil prices kicks in," says IATA CEO, Tony Tyler in the Economic Performance of the Air Transport Industry Report.

The report also highlights the growth in Gross Domestic Product (GDP) as another of the key factors behind reduced flight costs and even provides an estimate on how much travellers are expected to save.

"After adjusting for inflation, average return airfares (excluding taxes and subcharges) are expected to fall by some 5.1% on 2014 levels."

This news correlates with recent comments from Flight Centre Travel Group Managing Director, Mr Graham Turner, who says Australians are already benefitting from cheaper airfares.

"Generally, fares are becoming more affordable, services are becoming more direct, the in-flight experience is generally improving and there is a much wider range of choice," says Mr Turner.

"For example, the cheapest fares that we are advertising on flightcentre.com.au today from Sydney to ten of the top international destinations out of Australia are, on average, about 8% cheaper than the cheapest fares to the same cities one year ago."

The cities with the largest year-on-year return airfare declines as highlighted in IATA's report are Bali, Bangkok, Phuket, Hawaii, Los Angeles and New York.

If the predictions prove to be accurate, a return flight from Sydney to Los Angeles that today costs about $1,024 could quite possibly only cost about $972 sometime during next year.

.......................................................................................................................................................... * All prices used in this blog article are purely examples based on products from 12 December, 2014. For a current quote or to speak to an Airfare Expert about future flights, call 133 133 or pop into your nearest Flight Centre store .........................................................................................................................................................

Ben Stower

I love the kind of travelling that is one part strategic planning and two parts spontaneous adventure. Whether I'm exploring my local city or a small town in the middle of nowhere, I'm always hoping to find something no one else has discovered.