Economy airfares up 21% in 2026 as FCM warns of more hikes in 2027

Rising fuel costs and disruptions are driving up corporate travel expenses, according to FCM Consulting.

By SafarSamachar Desk28 Oct 2026, 6:33 am IST

Illustration

Illustration: SafarSamachar Pix Desk, created with AI assistance. Not a photograph of the event.

Key facts at a glance

1Economy airfares have risen approximately 21% so far in 2026.
2FCM Consulting warns of further airfare increases in 2027.
3Hotel rates reached a five-year high of US$223 in Q2 2026.

Economy airfares have risen approximately 21% in 2026, with FCM Consulting predicting more increases in 2027. The report links the rise to higher fuel costs and ongoing disruptions affecting corporate travel budgets.

Hotel rates have fluctuated, peaking at US$223 in the second quarter of 2026 before falling to US$216 in the third quarter. FCM advises businesses to rethink how they measure the value of work-related trips, moving beyond traditional cost and compliance reporting.

FCM Consulting highlights four gaps in corporate travel programmes, starting with the articulation gap, which focuses on expenditure rather than business purpose. Jo Lloyd, FCM Travel’s chief customer officer, says every business trip is an investment. Companies are reassessing how they track the value of travel, as costs continue to rise and disruptions persist.

What this means for travellers

Travellers should expect higher airfares and possibly increased corporate travel costs in 2027. Businesses may need to adjust their travel policies to account for rising expenses.

Sources

TTravel Weekly Australia

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