According to Michael O’Leary, head of low-cost airline Ryanair, you need to be prepared for ticket prices to rise in the next five years. Rode? High costs of aviation fuel, environmental taxes, as well as personnel shortages caused by, among other things, Brexit.
It got too cheap. Every time I fly to Stansted I notice this absurdity. Traveling by train to central London is more expensive than the price of a plane ticket, O’Leary recently told the Financial Times.
As we wrote in money.pl, after more than two years of crisis caused by the COVID-19 pandemic, air travel demand is recovering faster than forecasts. Airport capacity turned out to be the bottleneck. Staff shortages in ground handling resulted in hours of queues for security checks, problems with check-in and baggage retrieval, delays and canceled flights.
Carriers are raising ticket prices. More expensive at LOT and Lufthansa
London Heathrow Airport officials said this week they would limit capacity to 100,000. daily departing people. As a result, they asked the airlines to stop selling summer tickets. The limit will apply until September 11, 2022. Lufthansa canceled about 2,000 at the end of August. flights from Frankfurt and Munich. This is especially true for short domestic flights and for neighboring countries. The German airline also increased the prices of short-haul tickets to curb demand.
First of all, we want to relieve morning and evening traffic. At those times, the ground service in the terminals is overloaded and cannot keep up with the handling of passengers and baggage, the Lufthansa press service explains.
“Rzeczpospolita” wrote on Monday that the journey from Warsaw via Frankfurt to New York’s JFK airport in July will cost 5.5 thousand. PLN for a one-way ticket in economy class. In August it is cheaper – 3.8 thousand. PLN for the cheapest cruise. LOT has also increased ticket prices. On the next flights from Warsaw to New York, only the last tickets in business class for 8,200 are left. PLN one way. Prices have also risen in other directions. “For a return ticket for July from Warsaw to Paris with a Polish carrier, you have to pay PLN 2,200, while it was usually PLN 700-800” – it was written. In turn, a trip on the Mumbai – Warsaw – Toronto route in economy class will cost about 12 thousand this summer. zloty.
Low-cost airlines Wizz Air also warned in June that especially in the period from July to September this year. ticket prices are going up. – We see strong consumer demand for the summer, but expect an operating loss in the first quarter of 2023. The aviation industry is exposed to external factors such as air traffic control disruptions and ongoing operational difficulties in the airport sector, contributing to an unstable macro environment, said Jozsef Varadi, CEO of Wizz Air, quoted by polishexpress.co.uk.
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Mikosz: we will see an increase in ticket prices
Passengers have already become accustomed to flying becoming cheaper and more accessible.
– The decrease in the average ticket price has been a continuous trend in recent years. The cheaper the tickets, the more passengers. Our industry lived on this – explains Sebastian Mikosz, senior vice president of IATA, former president of PLL LOT and Kenya Airways, in an interview with money.pl.
Stresses that civil aviation is a global industry influenced by many macroeconomic factors. – Exchange rates and interest rates translate directly into the amount of lease installments for aircraft. The oil price determines the cost price of jet fuel. We see global staffing problems and a lot of work pressure. All this quickly increases airline costs and should be reflected in ticket prices – adds Mikosz.
But there is also good news.
These are all cycles and this is not the first time we have seen growth. The time will certainly come to lower prices again, but you have to prepare yourself that we will have to deal with an increase in airfare prices in the short term – says Mikosz in an interview with money.pl.
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