In economy class, fares were down by as much as 10 per cent in the last three months of last year, compared with the July-September period.

Across all classes, the overall dip was 2 per cent, said American Express in its latest travel report which looked at fares out of Asia Pacific.

Compared to the rates in October-December 2007 though, year-end fares in 2008 were still about 6 per cent higher.

It means for example, that if you had travelled last October, chances are your fare would have been cheaper than what it was say in July, but higher than in October 2007.

According to American Express, holiday makers and business travellers zipping within the region benefitted the most from lower fares.

Intra-regional fares, for example from Singapore to Thailand and Hong Kong, dropped by 4 per cent in the last three months of 2008, compared to the earlier quarter.

But long-haul fares, to Europe for instance, were up 2 per cent.

Industry watchers say the prominence of low-cost carriers has been the catalyst for lower fares in the region.