Expect higher airport charges as air traffic in Asia-Pacific soars

Head of industry group stresses need to cover cost of infrastructure improvements

- Kok Yufeng

With air traffic in the Asia-Pacific set to double over the next 20 years, passengers and airlines will need to help cover the cost of infrastructural improvements that are required to meet future demand by paying more in airport fees, said the head of a regional industry group.

"In order to attract the resources that are needed, you need to cover the costs. In one way or another, this means increasing the charges," said Mr Stefano Baronci, directorgeneral of Airports Council International (ACI) Asia-Pacific and Middle East, which represents more than 600 airports in the two regions.

"There is no free meal," he told reporters at a media roundtable on Sept 3 at Jewel Changi Airport. "If you cannot find other sources of financing, such as state support, then the primary beneficiaries of the (airport's) service are the ones that have to bear the cost." Mr Baronci sought to downplay the impact that such charges have on airfares, noting that international airport charges in the AsiaPacific and the Middle East have, on the whole, remained steady since the Covid-19 pandemic.

Instead, he argued that the price of an air ticket is driven by other factors such as demand patterns, supply and price elasticity.

Noting how airfares in Singapore have come down as airline seat capacity recovered, Mr Baronci cited preliminary industry figures for April and May 2024 that showed that fares here are now about 7 per cent higher than in 2019.