Why Are Airline Ticket Prices So High (Graphic)

By | April 30, 2023

its worst pandemic past and international borders are now open. He airlines they can continue their operation smoothly while waiting for higher profitability due to their increased tourism and business trips. However, ticket prices have now increased significantly.

One of the reasons is the lack of aircraft. The airlines were forced “put on ice” large number of aircraft due to reduced demand during the pandemic. no more now they are having a bad time to return them to their fleet, as larger aircraft are needed 100 service hours before restart.

The second reason is that consumers seem willing to pay handsomely for these notes, having been “stuck” in their homes for one to three years. According to recent research from booking.com with a sample 25,000 respondents who are planning a trip in the next two years, consumers seem to be more relaxed in terms of ticket prices after three years pandemic crisis.

“Although many trips are much more expensive than they were before the pandemic, many consumers feel that the trips are worth the increased costs,” said the Booking.com executive. warrior frames.

The bad news for consumers is that these high prices will continue for several years. At least that’s what it says its CEO Ryanair Holdings plc., Michael O’Leary.

lack of workers

registered airlines $200 billion losses due to the pandemic, while the sector was affected by layoffs tens of millions of workers, reports the Bloomberg. Given the industry’s recovery right now, airlines are desperately trying to increase their workforce. Many of the former employees, meanwhile, have decided to change careers.

The scarcity has increased the late check-in, baggage handling and passport controls. They have also forced airlines to increase the wages they offer their workers, which in turn increases the cost of tickets.

expensive oil

your prices oil have been rationalized, but the price of crude oil is still there 50% morefrom the corresponding January 2019, which is a problem for the operating costs of airlines. Many of them, especially the companies that offer cheaper tickets, have no protection against changes in the prices of “black gold” and are vulnerable to crises such as the one created by war in ukraine.

Airlines account for just over 2% of global air emissions, but have not taken many steps to reduce these gases. One of the main reasons is the fact that Environmentally sustainable aviation fuels cost up to five times more than their traditional counterparts.

The industry must invest $2 trillion to achieve the goal of net zero by 2050, according to IATAwhich causes ticket prices to go up to cover the increased costs.

At the same time, some of the newer technologies, such as the use of hydrogen and electric aircraft, remain in the research stages and will be extremely expensive even if built.

aircraft shortage

Until 16,000 aircraft of the world merchant fleet shut down their engines during the pandemic. Its reoperation is extremely difficult since each part of the aircraft will have to be checked to confirm its safety. Many of these aircraft remain in the deserts of Australia and the US to minimize rust, but many have new damage to their interiors or engines.

In addition, aircraft manufacturers are delaying new deliveries due to labor shortages. He sanctions against Russia have also limited access to titanium and other raw materials, driving up component costs.

The supply of new engines is an additional problem. companies like Spirit Airlines Inc. and the indian indian they have been forced to curtail their flights as there are parts shortages and manufacturers are unable to produce new engines. Some of the new generation engines also require more and more frequent maintenance.

“In the medium term, the weakness of Airbus and Boeing in terms of increasing your deliveries means that capacity will be reduced in the coming years,” O’Leary said at a recent conference Bloombergestimating that ticket prices will increase by double digits this summer.

the chinese factor

The world’s second largest economy and source $280 billion in annual tourism spending before the pandemic continues to recover from coronavirus lockdowns. Given the delayed “opening up” of the economy, Chinese travelers have not returned to international flights, while 30% of these, according to a recent survey, have no plans to travel outside of China in 2023.

HE Asia Pacific Airlines Association He has stressed that the return of the Chinese market to normality prior to the pandemic will take at least a year. Domestic passenger traffic has seen a significant recovery close to 2019 levels, but the return of international flights from the Chinese will be further delayed.

This delay means that the airlines do not want to proceed with a complete reoperation of their fleet, limiting the offer and increasing prices.

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