Airline tickets: high fuel prices rise
Some companies increase fares, others wait for answers from the market
The rise in fuel prices, despite increased demand for travel on the part of passengers, is threatening the recovery of the air transport sector. For this reason, the heads of the main airlines are considering what policy to implement in relation to ticket prices: whether or not to apply higher fares to passengers, and if so, by how much these increases should be.
This was also discussed at the meeting organized last week in Brussels by the European airline association Airlines for Europe. On that occasion, Lufthansa, British Airways and Ryanair made it known that, in specific areas of their business, they estimate that in the summer of 2022 there will be a return to pre-pandemic levels. At the same time, however, all said they were concerned about the rising price of fuel: +30% since the beginning of the Russian invasion (on February 24).
Many companies have raised ticket prices: Air France, Klm, easyJet. It was inevitable that companies "make sure that our business model still works" in an environment that includes higher airport and personnel costs, said Lufthansa CEO Carsten Spohr.
The managing director of Irish low-cost airline Ryanair, Michael O'Leary, is of a different opinion, saying that customers still need to be stimulated. That's why he said: "I'm sad to report that ticket prices are currently down at our place in April and May, they are lower than in 2019. We are still trying to rebuild our advance bookings for the summer". A company policy aided by a decent supply of fuel bought earlier at prices unimaginable today.
In any case, air carriers will have to be careful to charge costs directly to consumers, regardless of other airlines' prices and market trends. If the latter does not show increases in ticket prices, airlines will have to rethink their strategy to avoid greater losses.
AVIONEWS - World Aeronautical Press Agency