In this article, we will take a look at the 20 most expensive countries to fly to. If you would like to skip our analysis of the factors impacting the aviation industry, you can go to the 5 Most Expensive Countries to Fly to.
After a brief dip during the pandemic, flight prices have soared globally, with a recent report showing an increase of 31% in average flight prices over the last two years. However, the cost of flying to different regions has not increased in a uniform manner. Figures from the report reveal that flight prices have risen the most in Northern Europe as well as the Mediterranean and Asian regions. Each region has expensive and inexpensive countries to visit. For example, the Netherlands is amongst the most expensive countries to visit in Europe, while South Korea is one of the most expensive countries to visit in Asia. Airline ticket prices are rising in the USA also. The consumer price index for airline tickets rose by 25% during 2022, which was the highest increase to date, according to the Federal Reserve Bank of St. Louis.
One of the most significant factors influencing airfares is the cost of jet fuel, which currently accounts for roughly 31% of airline operating expenses. According to the International Air Transport Association (IATA), jet fuel prices rose by 92% in 2023 compared to 2022, primarily due to the ongoing war in Ukraine and global supply chain disruptions. IATA has also forecasted the average fuel price to be $113.8 per barrel in 2024. This will lead to a total cost of $281 billion for airlines, which can translate to higher ticket prices for passengers.
Demand-Supply Imbalance: Driving Up Airfares
Labor shortages within airlines and airports are also driving up operating costs. According to projections from the International Civil Aviation Organization (ICAO), the aviation sector is expected to require 480,000 new technicians for aircraft maintenance and around 350,000 pilots by the year 2026. The scarcity of skilled labor is resulting in issues such as flight delays, cancellations, and low passenger satisfaction. Moreover, this issue is likely to be further aggravated since 50% of pilots, particularly captains, are expected to retire within the next 15 years. To respond to the shortage, airlines are significantly increasing the salaries of pilots. Beyond the cost side, the demand equation is also fueling higher airfares. According to IATA, 4.7 billion people will travel in 2024, which is higher than the pre-pandemic level of 4.5 billion in 2019. This imbalance between booming demand and a limited supply of resources is pushing prices upwards.
Furthermore, the aviation industry is beginning to take initiatives for a greener future by utilizing sustainable aviation fuels (SAFs). However, SAFs are currently 3 times more expensive than traditional jet fuel. Moreover, $5.1 trillion dollars will be required to achieve the goal of zero emissions by 2050. The higher price of SAFs is translating into increased ticket prices for passengers who prioritize airlines focusing on sustainability. As SAF production scales up and costs decrease, this impact on ticket prices is expected to lessen, but currently, it contributes to pricing pressures.
The trend of rising airfares is expected to continue in 2024. Global airfares are predicted to increase by 3% – 5% in 2024 as airlines such as United Airlines Holdings (NASDAQ:UAL), American Airlines Group (NASDAQ:AAL), and Alaska Air Group, Inc. (NYSE:ALK) struggle with high fuel costs, incorporation of sustainable aviation fuels and an aging fleet. Despite the predictions, there are ways to always plan affordable trips, even to the 20 most expensive countries to fly to from the USA and other countries. Booking flights in advance, opting for flexible travel dates, and considering budget airlines are all effective approaches to lower costs. You can also check out the 20 Safest Airlines in the World for 2024 here.
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Our Methodology
To shortlist the 20 most expensive countries to fly to, we referred to the latest Travel and Tourism Development Index by the World Economic Forum. This Index, which comprises more than 110 countries, has been published on a bi-annual basis for more than a decade by the World Economic Forum. The ‘Price Competitiveness Sub Index’ takes into account various factors such as airfare ticket taxes, airport charges, and the impact of fuel prices on travel expenses. The countries are graded on a scale of 0 to 7, with 0 signifying the highest cost of traveling. The 20 most expensive countries to fly to have been ranked in descending order of their price competitiveness index value.
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20 Most Expensive Countries to Fly to
20. Germany
Price Competitiveness Index Value: 4.1
Following the pandemic, air travel in Germany has experienced a sharp increase in prices. Germany’s Statistical Office released data indicating a significant 25% increase in prices for international flights as of mid-2023. Meanwhile, there was an increase of 32% for flights bound within Europe compared to the preceding year.
19. Belgium
Price Competitiveness Index Value: 4.1
As a high-income economy, Belgium is characterized as an expensive destination. In addition to high travel costs, the country also has high average hotel costs, making it a relatively expensive country for visitors.
18. Italy
Price Competitiveness Index Value: 4.0
A Southern European Country, Italy is famous for its high-end luxury products, such as footwear and accessories, leading to high consumer costs. In 2019, Italy welcomed nearly 100 million vacationers, as reported by the World Bank. Although this number saw a decline during the pandemic, there was a rise in tourism in 2022, with an estimated 56 million arrivals.
17. France
Price Competitiveness Index Value: 4.0
On average, a visit to France tends to be relatively more expensive compared to other countries. A day spent in Paris, for instance, may cost approximately €100-€150. The conversion of historical palaces into hotels is not uncommon in the country, with one such establishment charging a high $26,000 per night.
16. Austria
Price Competitiveness Index Value: 4.0
Austria is also one of the most expensive countries to travel to in terms of travel and accommodation. According to Tobias Thomas, the director general of Statistics Austria, there has been an increase in prices for package tours, which are currently experiencing high demand. This rise in prices is one of the factors driving inflation.
15. Netherlands
Price Competitiveness Index Value: 3.9
Recent data indicates that the Netherlands currently stands out as the most expensive country in northern Europe when it comes to air travel costs.
14. Lebanon
Price Competitiveness Index Value: 3.8
Lebanon is an expensive Middle Eastern country boasting an upper-middle-class economy. The Lebanese government enforces high taxes and fees on airlines conducting operations within the country, resulting in Lebanon being one of the most expensive destinations for air travel.
13. Finland
Price Competitiveness Index Value: 3.8
Finland is at the thirteenth position on our list of the most expensive countries to fly to. Round-trip tickets from major US cities to Finland can typically go up to $1,500, with prices influenced by factors such as the season and airline chosen for travel.
12. Greece
Price Competitiveness Index Value: 3.8
Traveling to Greece can be relatively expensive compared to numerous other European destinations, and several factors contribute to this higher cost. One of the factors is the limited competition, particularly with a scarcity of direct flights from certain US cities. The lack of alternatives and direct routes contributes to driving up the overall prices for flights to Greece.
11. Denmark
Price Competitiveness Index Value: 3.8
When visiting Denmark, a notable aspect that will catch your attention, particularly in the realm of shopping and purchasing, is the cost of goods and services. The country ranks 114 out of 117 countries globally in terms of purchasing power parity.
10. Sweden
Price Competitiveness Index Value: 3.8
Sweden is commonly perceived as a relatively expensive place to visit, particularly when compared to some other European countries. Various factors, including increased demand, contribute to the high cost of traveling in Sweden.
9. Ireland
Price Competitiveness Index Value: 3.7
Similar to numerous European countries, Ireland enforces an Air Travel Tax (ATT), contributing to a higher overall cost. Furthermore, airlines are subject to charges from airports for utilizing their facilities, and these fees can vary considerably depending on the infrastructure and services provided by each airport. Certain airports in Ireland impose fees that are more than the average, and airlines frequently transfer these additional costs to consumers.
8. United States of America
Price Competitiveness Index Value: 3.6
The United States continues to be listed among expensive travel destinations, securing the 8th position in terms of overall expensiveness. Cities such as New York City are renowned for their notoriously high costs, often requiring visitors to spend hundreds of dollars per day. Popular airlines such as United Airlines Holdings (NASDAQ:UAL), American Airlines Group (NASDAQ:AAL), and Alaska Air Group, Inc. (NYSE:ALK) are all based out of the US.
7. New Zealand
Price Competitiveness Index Value: 3.6
The peak season in New Zealand falls during the summer months, spanning from November to February. It is generally considered the most expensive period for flights from the United States to New Zealand.
6. Australia
Price Competitiveness Index Value: 3.6
Data published in mid-2023 indicated that international airfares departing from Australia had risen by over 50% above pre-pandemic levels. According to flight search company Kayak, the average return economy international fare from Australia stands at $1,827, up from $1,213 in 2019. The most sought-after routes include flights to Bali, London, Tokyo, Los Angeles, and Paris, as indicated by analysis conducted for Guardian Australia.
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Disclosure: None. 20 Most Expensive Countries to Fly to is published on Insider Monkey.
