Airline prices are going up. It can only improve in the winter

Let’s help Ukraine – you can help too

The flight in the last week of July from Warsaw to Barcelona and back costs about two thousand zlotys, the amount you had to pay for a flight to New York before the pandemic. Similar prices apply for Paris at Charles de Gaulle Airport, and for London, at Heathrow, with a bit of luck you can buy a LOT of Polish Airlines ticket for PLN 1100. British Airways demands almost four thousand zlotys for the flight and Lufthansa – three. Michael O’Leary, head of Irish airline Ryanair, said in an interview with the Financial Times not long ago that tickets are still cheap and announced that their prices will rise over the next five years.

Now tourists feel most of the price increases. – The flight prices reflect the current situation in the aviation industry – indicates Interia Piotr Henicz, vice president of ITAKA HOLDINGS and vice president of the Polish Chamber of Tourism. – Staff shortages reduce the supply of flights. When demand significantly exceeds supply, prices rise. This is of course not the only reason. The price of the ticket is influenced, among other things, by components such as fuel prices or the costs of ground handling – sums up the vice president of ITAKA HOLDINGS in an interview with Interia. Piotr Henicz warned that it would become increasingly difficult to find a cheap flight. – The market has become accustomed to cheap bargains, of which there will be fewer and fewer, as well as last-minute offers from travel agents – he assured.

However, those who booked early on their journey, despite the increases, usually do not have to pay extra. – So far, we have managed to keep the price of travel unchanged for our foreign customers, also for those who have pre-booked departures – says Piotr Henicz. However, he adds that travel agents are missing out on prices. – In the case of charter destinations, and we have the vast majority of these, it comes at the expense of a margin of a few percent of the tour operator, ie at our expense – he informs. Itaka’s vice president emphasizes that charter partners honor previously signed contracts, but the calculations are based on the dollar and euro, and the travel agency charges with fuel after departure, according to current prices. – High exchange rates and fuel prices affect the cost of the flight, which accounts for a significant proportion of the price of the entire tourist package, and the further away, the more expensive. So keeping prices for the customer costs money, but the tour operator. With “ad hoc” groups or extra departures, a significant price increase is visible – emphasizes the vice president of Itaka.

In mid-May, the price of jet fuel exceeded the previously forecast value by 50 percent. In 2021, IATA predicted that fuel prices would remain at $70 a barrel this year, now – just over 5 months before the end of the year – at $103.48 a barrel (and periodically the price was even higher). In addition, after the Russian aggression against Ukraine, many flight routes had to be extended for security reasons to avoid the conflict zones. From Poland, these are mainly Asian and Far East routes. The fuel price excludes fees for CO2 emission certificates (EU ETS). They generate additional costs on European routes – almost 300 euros per tonne of fuel.

Another component of the ticket price is also the airport charges, which have increased this year. According to Interia, the press service of the Civil Aviation Bureau announces that the en-route fee charged for each flight in the airspace controlled by air traffic control services is 214.90 PLN – 17 PLN more than in the previous year. And the terminal fee charged by PANSA for aircraft maintenance during takeoff and landing is PLN 450.75 at Chopin Airport – almost PLN 100 more than in 2021, and at other airports PLN 1094.96 – almost PLN 304 more than a year ago. . The Civil Aviation Authority recalled that under Art. 23 of the Regulation of the Council of Ministers 1008/2008, the prices of air tickets also include air fares or airline fares, taxes, security charges. Their component is also the pricing policy of a particular carrier, as well as the current demand for travel on a particular day and on a particular route.

That’s why everyone is raising ticket prices, including low-cost airlines. In mid-May, the holiday walk was announced by Michael O’Leary, head of Irish airline Ryanair. The increase was justified by the interest of travelers on holiday in warm places. “We think prices will be higher during this peak summer period as European beaches are in high demand and therefore price increases will continue,” O’Leary explained in a BBC programme. For travelers, the prediction is that we will pay less for air travel next winter than for summer holidays. Such an opinion is shared by O’Leary. – I think prices will be low next winter. However, it is too early to talk about it. Clearly there could be an economic slowdown – O’Leary predicted on the “BBC Today” program in May.

Ewa Wysocka

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