AAPA: Fares falling by 1%-2% in real terms on global basis
Association of Asia Pacific Airlines (AAPA) DG Andrew Herdman, speaking at the CAPA Airline Leader Summit, responded (17-May-2018) to an infographic presented by CAPA - Centre for Aviation executive chairman Peter Harbison, which showed airline ex-fuel CASK has remained relatively stable over the last 15 years. Mr Herdman stated the fact that CASK has "held its own" means fares have not increased with inflation, rising airport charges, growing labour costs and other cost pressures generic to inflation. Mr Herdman estimates fares to be falling 1%-2% p/a in real terms on a global basis. He said there has been a "tremendous effort" by the industry to reduce costs.