The cost of international air travel is likely to keep on rising despite a transatlantic investigation into possible collusion by some airlines over ticket prices and fuel surcharges, analysts said last night.
A joint investigation by US and UK authorities may make airlines more careful with their pricing and surcharges, but is not likely to stop carriers raising their fares, they said.
"We are likely to see continued fare increases and higher fuel surcharges," said Jim Corridore, an equity analyst at Standard & Poor's. "Obviously, airlines are going to be very careful in how they apply those from now on."
UK authorities have raided British Airways offices in the investigation. American Airlines, United Airlines and Virgin Atlantic said they were also involved but were not direct targets.
The US Justice Department said it was also investigating possible anti-competitive practices in airline fares and cargo rates.
Despite the investigation, international air-ticket prices, already at six-year highs, look set to continue their ascent, bolstered by limited competition, low capacity increases on most routes and high demand fed by a growing global economy.
International business-class tickets, which are the primary profit drivers for full-service airlines, are estimated to have ended March costing 5.9 per cent more than the first quarter of 2005.