Airfares Pressure Is Becoming Structural

Airfares are under pressure from both geopolitics and decarbonisation policy. Middle East conflict is continuing to disrupt flight paths and add to fuel costs, while the aviation sector is also facing mandatory sustainable fuel requirements that will steadily increase operating expenses.

The UK’s SAF mandate starts at 2% in 2025 and rises over time, while Singapore has introduced a passenger levy to help fund sustainable aviation fuel purchases. These are not isolated policy moves. They are part of a broader shift in which the cost of cleaner aviation is increasingly being passed through to travellers.

For Indian corporate travel buyers and TMCs, this has real budget implications. Fare volatility is no longer a temporary market shock; it is becoming part of the pricing base. That means more pressure on advance planning, stronger fare monitoring and better client education around why ticket prices may stay unpredictable.

B2B takeaway

Fuel shocks, conflict risk and SAF charges are now part of the regular airfare equation. Travel buyers need to plan for volatility, not expect a return to old pricing patterns.