FCM sees economy airfares fall for UK clients in Q3

Economy airfares from the UK fell by up to 10 per cent in the third quarter of this year, according to the latest data from travel management company FCM, although business class prices have risen.

FCM said there had been an average fall of between 5 and 10 per cent in UK outbound airfares in Q3 compared with the same quarter of 2023 – an average economy ticket was priced at £476 in the third quarter of 2024. Germany and France also saw a reduction in year-on-year outbound ticket prices of 1-3 per cent on average during the quarter.

The TMC said that UK economy fares saw the largest year-on-year drop of 15-20 per cent during July, while the reductions in August and September were more modest at 2-4 per cent and 1-3 per cent respectively.

The year-on-year fall in UK airfares was one of the main factors in the country’s inflation rate dropping to 1.7 per cent in the 12 months to the end of September, which was down from a rate of 2.2 per cent in August.

Andy Hegley, managing director Europe at FCM Travel, called the figures “positive news for business travel customers”.

“For those booking premium tickets, we’ve seen an average 3 per cent increase in fare prices. These dynamics are important to consider when reviewing your overall travel policy,” added Hegley.

FCM said that largest fare reductions were being seen on routes between the UK and the Far East, with year-on-year drops of between 30-45 per cent on flights to Japan, South Korea and China, which is being attributed to increased flight capacity.

“The unlocking of capacity to key Asian hubs is really positive and is helping to drive down airfares for our business customers,” said Hegley.

“It’s important to recognise that the global travel dynamics are continuously evolving and facing new pressures from many different directions including rising fuel costs, ongoing labour issues and geopolitical conflicts.”

Last week, Advito released data showing that airfares across Europe were set to rise during the fourth quarter of 2024 and have been “trending” upwards compared with Q3 prices.