Airfares to Stay High in 2025 Amid Surging Travel Demand

Airfares in the UAE and globally are projected to remain elevated in 2025, driven by robust travel demand even as oil prices are expected to stay relatively stable.

This ongoing demand is fueled by corporate travel, MICE (meetings, incentives, conferences, and exhibitions), bleisure (business + leisure) trips, and seasonal travel, which remain key motivators for travelers in the UAE and beyond.

Why Airfares Are High

The UAE, particularly Dubai, continues to attract a growing influx of tourists and residents, significantly boosting travel demand. This surge is expected to maintain pressure on airfares, making 2025 a year of premium prices for flights.

Adding to the challenge, global airlines, including those in the UAE, are facing delays in aircraft deliveries. This has disrupted their expansion plans, further limiting seat capacity and keeping prices high.

Rising Costs and Strategic Adaptations

Airfares are likely to increase by 2–14% globally in 2025 due to higher fuel costs and inflationary pressures. Businesses are already adopting innovative travel strategies and loyalty programs to manage these expenses effectively.

Aircraft Shortages and Oil Prices

Global consultancy OAG highlights that average airfares are unlikely to drop anytime soon, citing a supply-demand imbalance, operational cost increases, and the strong US dollar as primary factors.

Oil Prices Steady but Impact Minimal

Meanwhile, the International Energy Agency (IEA) forecasts Brent crude oil to average $79 per barrel in 2025, a slight dip from $82 in 2024. While oil prices are stable, their impact on airfares is overshadowed by factors like supply constraints and operational costs.

Plan for Smarter Travel

With airfares set to remain high, early planning and flexible travel options are key to making the most of your 2025 adventures. Explore Cleartrip.ae for seamless booking and travel insights to help you navigate this evolving landscape.