Residents of the UAE can expect a significant drop in airfare rates after mid-January 2024. The expected rate reduction, which could be as much as 50-60%, is anticipated across various routes, including to the UK, major European cities, the Philippines, and even longer haul routes to the US.
This comes as a relief to travelers, especially after a period of exceptionally high fares. Malou Prado, CEO of Dubai-based MPQ Travel and Tourism, indicates in a Gulf News report that the biggest fare reductions will be seen on long-haul routes from the UAE starting from the second and third week of January, following the peak winter travel season.
Despite the current high demand for flights into Dubai, particularly from large tour groups, these rate drops will make last-minute bookings more feasible for travelers based in the UAE. However, on routes from the Philippines to the UAE, high rates are expected to continue into February due to heavy VFR (visiting friends and relatives) traffic.
Significant fare reductions have been noted on several key routes. For instance, Economy Class fares from London Heathrow Airport to Dubai International are set to decrease from Dh5,135 to Dh2,410. Similarly, rates from New York to Dubai will reduce to Dh3,519 from Dh6,487, and San Francisco to Dubai will see fares at Dh5,943 compared to Dh7,600 in December. European destinations will also see reduced rates, with fares averaging from Dh2,722 (Paris) to Dh3,005 (Amsterdam). Additionally, fares from Manila to Dubai will drop to Dh2,000 by the end of January, a significant decrease from the Q4-2023 highs of Dh5,000.
After a prosperous winter season, with fares over 50 to 60% higher than in September-October, the airlines are now set to offer more budget-friendly rates. Afi Ahmed, Chairman of Smart Travels, suggests that these lower fares will likely last until around March 10, coinciding with lower travel demand due to school reopenings and businesses focusing on yearly budgets.
Shanavaz Khan, founder of Trips Away, notes an increase in demand from Eastern Europe, the Mediterranean countries, and some European travelers who are postponing their holidays to take advantage of the cheaper fares and lower hotel rates in the UAE.
Overall, the travel industry remains robust, with Carlo Olejniczak, Vice-President and Managing Director for Booking.com in Europe, Middle East and Africa, expecting strong growth in travel bookings for the first quarter of 2024. The International Air Travel Association (IATA) anticipates that about 4.7 billion people will travel in 2024, surpassing the pre-pandemic levels.