By Ian Neubauer

Costlier airfares in the Asia-Pacific region are not dampening demand from business travelers, according to industry sources.

Airfares in the Asia-Pacific region climbed 3 per cent in the last quarter and 9 per cent in the 2007-08 fiscal year, the American Express Business Travel Monitor (AEBTM) reported.

But Singapore Airlines, the world’s second largest airline by market value, said demand for flights from the business sector have been unaffected by rising airfares.

Higher costs are largely attributed to the skyrocketing price of jet fuel that is squeezing airline profits. Singapore Air this week reported a 15 per cent earnings decrease in the last quarter, Reuters reported.