Airfares in the UAE and globally are expected to stay high in 2025 due to strong travel demand, despite predicted low oil prices. This demand will be fueled by corporate, MICE, and bleisure travel, along with regular trips by UAE residents. Rising numbers of tourists and residents, especially in Dubai, will also boost demand.
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Musafir, an online travel agency, forecasts a 2-14% increase in global airfares in 2025 due to rising fuel costs and inflation. Businesses are adapting by utilizing innovative travel strategies. CEO of musafir.com, Sachin Gadoya, notes that corporate travel now promotes growth and innovation, with Dubai, Paris, and Sydney being popular bleisure destinations.
OAG consultancy suggests that average airfares will not decrease in 2025, even with lower oil prices, due to supply shortages and rising operational costs. IATA reports a notable drop in aircraft deliveries and predicts a significant backlog of orders. Additionally, the International Energy Agency expects minimal changes in oil prices, forecasting a balanced supply and demand.
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