Time of cheap flights is over Prices for airline tickets go through the roof

6 mins read

Bargain hunters are currently having a hard time with air travel. Ticket prices skyrocket, especially during the fall vacations. Even low-cost airlines like Ryanair are following the trend. There are many reasons for this.

Too few aircraft, staff shortages and expensive kerosene: the time of cheap flights is over for the time being. Travelers will probably have to prepare for higher ticket prices for years to come in view of the sharp rise in production costs and ongoing corona problems. Even the Irish price breaker Ryanair wants to raise prices in view of the expensive fuel.

Especially at the time of the fall vacations, many consumers feel that a lot has changed in the European skies. 750 euros for a trip to Cyprus or 200 euros for a one-way ticket to Germany’s favorite destination, Majorca, are not uncommon these days and a far cry from the former marketing hit of the 10-euro ticket. Ryanair CEO Michael O’Leary sees no more scope for such ridiculous prices in the coming years. Instead, Europe’s largest low-cost carrier announced in a BBC interview that the average ticket price would rise by 25 percent to around 50 euros per route.

The comparison portal Check24 arrived at significantly higher average prices for the period of the German fall school vacations from October 4 to November 6. For example, a return flight to the Canary Islands costs an average of 464 euros, 21 percent more than a year earlier and even 30 percent more than in the same period before the Corona crisis. For a trip to the Turkish Riviera, sun-seekers have to pay 385 euros. That is 27 percent more than in the same period last year, and round-trip flights to Bodrum on the Turkish Aegean are even 44 percent more expensive within a year.

“Supply still lags behind demand”.

Credit insurer Allianz Trade sees the sharp rise in kerosene costs since the Russian attack on Ukraine as the main reason for the high-price phase. For the year as a whole, Allianz expects ticket prices to rise by a far above-average 21 percent. In view of fuel prices, airlines also currently have little incentive to increase their staff, which was cut back sharply during the crisis.

“Supply is still lagging behind demand,” notes Gerald Wissel of consultancy Airborne. “Airlines are not managing to get all their aircraft back in the air, partly for organizational reasons. But they are also operating with the handbrake on because of the uncertainties surrounding Corona. It’s very difficult to estimate.” Up to and including August, just under 105 million passengers used German airports, so there was still a good third (-36.5 percent) short of the pre-crisis level from 2019. However, according to the German Airports Association (ADV), demand has increased significantly since March, reaching 74.8 percent in August compared to August 2019.

According to data from the German Federal Statistical Office, ticket prices in the travel month of August rose by an average of up to 12.5 percent year-on-year. Compared to the pre-crisis month of August 2019, flights became more than 20 percent more expensive. Lufthansa CEO Carsten Spohr makes no secret of the currently very adequate ticket revenues of his group, which was rescued by the state. Seats on the planes are more often going at the maximum prices of the upper booking classes. The automated booking system sets ticket prices for each individual flight several times a day and quickly closes the lower-priced classes if experience shows that there is still sufficient demand by the time of departure.

Deutsche Bahn sets limits for Lufthansa

“The desire to buy our product is so strong that we can’t keep up with production,” Spohr said a few days ago. And even the upcoming recession could be countered by selling a larger share of tickets in the U.S., he said. “We are gaining market share there and selling at prices we wouldn’t otherwise know,” the Lufthansa CEO reported.

Expert Wissel points to the pricing power of the airlines. “Particularly on monopoly routes, the companies exploit their advantage as long as the competition plays along.” Within Germany, it is primarily the railroads that can impose limits on Lufthansa’s ticket prices. With a corresponding expansion of the tracks, this can also be expected in the European network, according to the experts of the alliance. Antje Monshausen of Tourism Watch at Brot für die Welt points to climate-friendly alternatives in Europe, especially rail and bus transport.

Rising kerosene prices could contribute to the necessary transport turnaround. “If, in addition, air traffic subsidies are used to improve and expand rail transport, the transport turnaround is possible without restricting people’s mobility needs too much.”

main source of the news: https://www.n-tv.de


Salih Demir

Salih Demir lives in Germany. He is interested in politics and economy. Germany editor of -ancient idea- fikrikadim.com