New Delhi, Nov 27: International airfares on routes originating from India have increased significantly over the past 12 months, in some cases by as much as 29 per cent -- according to the American Express Asia Pacific Airfare Index.

First-class airfares recorded the highest rise at 29 per cent. Business class, full economy, lowest peak-season excursion, discount economy fares and lowest off-season excursion fares all increased by 12-21 per cent.

Commenting on the findings of the index head of Travel Services Group, American Express Travel Related Services A Mathur said "we feel that this increase has been due to a combination of high fuel prices, high load factor and the drive by airlines to obtain higher yields in all classes.

The increase in First & Business Class airfares, in particular, has been because airlines in the region are investing heavily on new equipment and facilities to attract a greater percentage of the corporate travel dollar".

"In the past 12 months upto the 3rd quarter of 1997, we found that airfares in all classes of travel increased by 12-29 per cent, well above the inflation rate in India over the same period" he added.

Overall, the airfare index found that fares throughout the Asia Pacific region rose by an average 5 per cent over the past 12 months and an average 1 per cent over the past quarter. This increase is considerable when compared to airfare changes over similar periods in both Europe and North America, according to the index.

This pattern of fare increase throughout Asia Pacific is expected to continue, particularly, in Asia where airport congestion and restrictive bilateral agreements would keep fares up over the next 6-12 months, the index has to sayfor the coming period.

The American Express Asia Pacific Airfare Index is published every quarter as a guide to airfare changes and trends in the Asia Pacific region. It is produced exclusively for American Express by Access Economies, Australia.

The index surveyed 947 published international airfares across 165 city-pairs throughout Asia Pacific,says American Express Asia Pacific Airfare Index.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.