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HomeLatest NewsFlight prices skyrocket at the gates of summer due to strong demand

Flight prices skyrocket at the gates of summer due to strong demand

Date: June 18, 2024 Time: 12:33:08

Everyone says it: flight prices are very expensive. And a simple glance at the pages of the airlines or comparators seem to confirm that traveling in high season is no longer as cheap as before. It may not be the end of ‘low cost’, but it seems clear that the bargain of traveling for a few euros to any European destination is ending, at least during the holiday season. There are many factors that explain the high prices of plane tickets to leave Spain or even to move between it, but there is one that is omnipresent among all of them: inflation.

The general rise in the cost of living has triggered those of the aviation sector, which has been greatly affected by energy tensions that are raising the price of kerosene. The closure of Russian airspace due to the invasion of Ukraine has also made it more expensive to fly to exotic destinations such as Southeast Asia, Korea, Japan or China, since it requires longer routes through the Middle East or the North Pole. At the same time, the airlines have also agreed to wage increases for their staff to avoid new strikes, and this, together with the increases in the rest of the value chain, inevitably affects prices.

“Prices have risen 24% this summer compared to last year on all those flights originating in Spain,” explains Beatriz Oficialdegui, director of marketing and communication at the Destinia travel agency, according to what they have studied with the data available on their platform. She explains that the main reason is due to the fact that “supply is not increasing as much as demand, since there are a lack of seats and routes to recover, but demand is much higher, which causes prices to rise,” she explains to Information.

This is how the airlines see it

2023 to recover a good part of what was lost in previous years. When asked about this situation, the airlines give different justifications to explain why this increase in costs is due.

Carlos Muñoz, CEO of Volotea, pointed out in a recent meeting that these price increases are “absolutely necessary” due to the rise in the price of fuel, which during 2022 doubled its price compared to pre-pandemic values. When asked by La Información, Jesús Nuño de la Rosa, CEO of Air Europa, defended that these increases are due to higher operating costs and the operation of the dynamic pricing systems that the different companies have.

Javier Gándara, general director of EasyJet for southern Europe, justifies this newspaper that prices are fixed due to the interaction between supply and demand, so these increases would be due to increased interest in traveling at a time when airlines will fly above the levels of 2019. Despite everything, the also president of the ALA employers’ association defends that “flying continues to be very competitive at the price level” in the future.

Much demand and a similar supply

In May, the number of passengers who arrived in Spain by plane will already be at levels similar to those before the pandemic, in the absence of 0.3% that will foreseeably close in June. But this situation of almost recovery contrasts with a very strong demand, which the Ministry of Industry, Commerce and Tourism estimates at 3% more than then. Data from Enaire, air traffic controller at most airports, suggest that the number of flights managed is already 1.4% higher than in 2019, a record year.

At the beginning of the year, AMEX GBT estimated an average increase of 5.5% in the prices of intra-European flights, with differences according to the destination continents: flying to Asia could be 9.8% more expensive than the previous year; for traveling to America the increases would be more than 5%, while to Africa or the Middle East the increases would be limited to less than 3%.

Interests in traveling

The predilection for Spain of travelers from the main world economies is also causing these ticket prices to tighten, according to what can be extracted from MasterCard’s Travel Industry Trends report. To all this is added that tourist companies are fully aware of the interest in traveling. Most executives in the sector assume that there is a hunger to get out of the usual environment, and their data confirms this: until April, airline reservations had tripled in value, according to the consultancy Quantum Metrics.

This trend is due to the change in traveler habits, which no longer behaves as it did during the pandemic: “Last year we bought at the last minute and this year we are booking more in advance, as was done in 2019, because the longer we wait more go up”, they confirm from Destinia.

The Spanish tourist association, Exceltur, assured in its latest outlook report that passenger transport companies would close the second quarter with 13.5% more sales than four years ago, confirming this trend of booking in advance.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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