US air fares surge to 5-year highs

NEW YORK - US business travellers paid more for flights between April and June this year than at any time since the end of 2001, but these price hikes are starting to deter some leisure travelers, according to a study released today.

The quarterly survey by American Express Business Travel found US domestic airfares have surged 13 per cent in the past year while international airfares have risen six per cent.

Travelers also paid up to 11 per cent more for hotels and four per cent more for rental cars on a daily basis.

"It's a combination of more demand with more people traveling, particular for business, and higher costs for such things as fuel," American Express Business Travel spokesman Frank Schnur told Reuters.

"I think business travel will continue like this, with more travelers going to the Asia Pacific region particularly, but the price increases have to to a point where some travelers, particularly in the leisure market, will not take the trip."

The survey, which is called the Business Travel Monitor and tracks 329 of the US's most used routes, found the average domestic fare paid for business travel in the second quarter rose to US$247 ($379) one-way, up 13 per cent from US$218 a year ago.

- REUTERS