Global airfare prices are expected to remain stable throughout 2026, according to the latest findings from the Air Monitor 2026 report from American Express Global Business Travel (Amex GBT).
The annual report forecasts global airfares and provides industry trends and strategies. The findings from the 2026 report predict airfares in 2026 will “look much like they do in 2025”.
For Canadian travellers, flat pricing has been forecast across key transborder and domestic routes:
- Flights within North America: Business 0.3 per cent decrease, Premium Economy 0.2 per cent decrease, Economy 0.5 per cent decrease.
- Flights from North America to Europe: Business 0.2 per cent increase, Premium Economy 1.8 per cent increase, Economy 1.5 per cent decrease.
- Flights from North America to Asia: Business 0 per cent change, Premium Economy 1.5 per cent decrease, Economy 5.7 per cent decrease.
- Flights from North America to the Middle East: Business 3.1 per cent increase, Premium Economy 3.8 per cent increase, Economy 0.9 per cent decrease.
The report says airlines are restoring capacity that was pulled back after a 70 per cent drop in US-Canada air traffic in early 2025, as reported by Open Jaw. Amex says supply is returning faster than demand and because of this, fares are expected to remain flat throughout 2026.
Recent labour dispute settlements in Canada are also highlighted as contributing to upward pressure on airline operating costs heading into 2026.
Another trend highlighted in the report is business travel demand remaining resilient over the next year. The biggest business class fare increase predicted by the report is South America to the Middle East, which is expected to increase by 9.9 per cent.
The findings also point to industry dynamics as well as limited opportunities for airlines to push up fares as reasons that ticket prices should remain stable.
The report says airlines are adopting increasingly sophisticated revenue strategies instead of broad fare-based increases. Some of the strategies include “investing in premiumization” and applying continuous pricing.
Amex says approaches like these are reshaping the competition and helping to keep base fares stable while offering more diverse products and services for travellers.
Some of the other factors expected to influence airfare prices in 2026 include:
- Uncertainty over geopolitical and economic issues.
- Airline economics including labour disputes and the potential return of fuel price volatility which puts more pressure on airlines.
- Airlines are elevating the traveller experience by expanding premium offerings to generate additional revenue streams.
“Airlines are expanding their offerings through new products and pricing models, giving businesses more choice but adding opaqueness to travel program management,” said Dan Beauchamp, VP Consulting, Amex GBT.
Beauchamp added that to maximize value, businesses would need to “stay agile” and “look beyond fares” to unlock the best value for travellers.
