The ranking, which was first released in 2013, compared 1,180,000 fares from 312 international and domestic carriers to determine each carrier’s average price per kilometre. It also includes a top 50 global ranking by price.
Key insights from the ranking include:
- Flight prices are more prone to fluctuate with supply and demand, unlike train, bus, ferry and taxi fares, which are comparatively more stable over time.
- Many factors can influence per km costs including the type of aircraft flown, routes flown, local salary and fuel costs, ancillary revenue, and airport landing fees.
- Budget carriers such as Lion Air and AirAsia are at the low end of the cost per km scale, relying on an LCC business model and operations based in countries with lower average salaries.
- Innovative airlines such as KLM are more expensive; high service levels and initiatives such as the introduction of biofuels on some European routes don’t come cheap.
Rome2rio CEO, Rod Cuthbert says, “Our analysis is intended to be a conversation starter, not a definitive statement on pricing trends or a given airline’s place in any particular pecking order. With global uncertainty around oil prices, economic stability, geopolitical pressure and the UK’s recent decision to leave the European Union, we expect there will be many changes to these rankings over the coming months. The EU’s open skies policy, which stimulated the growth of lowcost airlines and lowered fares as a result, will now be under pressure. We may well see a rise in costs as a result.”