VALLETTA (MALTA) (ITALPRESS/MNA) – Airfares in Malta have climbed to record levels, with inflation in air passenger transport hitting 46% in April 2025 compared to a year earlier, according to the Central Bank of Malta’s latest Outlook for the Maltese Economy.
The spike, among the sharpest in Europe, is fuelled by a post-pandemic tourism boom that has driven passenger numbers far beyond pre-2019 levels, while available seat capacity struggles to keep pace. Added pressure from high fuel and operational costs has deepened the surge. Airfare inflation remained severe in the following months—42% in May and 25% in June—far above the euro area’s 14% in April. While other tourism-heavy destinations like Greece and Spain also saw steep increases, their prices began to stabilise earlier this year. The report notes that airfares are now a major driver of overall inflation in Malta, contributing 0.6 percentage points in April alone—about a third of services-driven inflation.
Despite airlines boosting seat capacity—35% above 2019 levels in 2025—demand continues to outstrip supply. In February, passenger movements were up 56% compared to 2019, while seats increased by 47%, leaving a persistent gap. Fuel remains another challenge. Although crude oil prices have eased since peaking in 2022, jet fuel and other airline costs remain elevated. Further pressure looms as the EU phases out free emissions allowances by 2026 and Sustainable Aviation Fuels, priced at over four times traditional jet fuel, become mandatory. The Central Bank projects airfare inflation will stay high through mid-2026 before gradually returning to its long-run average of 3% by 2027. But structural cost pressures could slow the return to normal pricing.
– photo IPA Agency –
(ITALPRESS).
