Hong Kong - The American Express (Amex) Airfare Index for the Asia-Pacific region has shown considerable increases in air fares for several classes of travel from Australia, Hong Kong, Indonesia, Japan, Malaysia, Pakistan, Taiwan and Thailand in the second quarter of 2005.

Only a few reductions in air fares were recorded in first-class air fares on routes from Indonesia, economy fares from Singapore and excursion air fares from India.

Amex head of consulting services Japan, Asia-Pacific and Australia, Mr Robert Tedesco, said the results reflected the ongoing impact of jet fuel prices and changes in airline pricing strategy.

“Oil prices have been oscillating around US$50 per barrel over the past six months.

“Moreover, we have seen significant cost pressure on airlines which in turn drive up fuel surcharges.

“Some surcharges reach US$15 on shorthaul sectors and up to US$46 on long-haul sectors,” he said.

The overall index for the Asia-Pacific region comparing the first and second quarters of this year saw a general increase in first-class fares of 1.9 per cent and business-class fares of 1.8 per cent. Full economy air fares increased 1.2 per cent while discount economy fares rose 1.1 per cent.

Lowest peak-season excursion fares climbed slightly by 0.7 per cent as did lowest off-season excursion fares, which were up by 0.9 per cent.

In Hong Kong, first-class and business-class air fares increased 2.3 per cent and 1.8 per cent respectively.

Full economy and discount economy fares climbed 0.4 per cent in the quarter. Peak season and off season excursion air fares both increased 0.2 per cent.