Most airlines around the world have found themselves besieged by eager travelers. Flights to several locations are increasing and this was expected after the pandemic lockdown.
This rush has also led to an astronomical increase in air ticket prices. Even though the reasons for this hike are not isolated, some happenings explain it.
Several factors are responsible for the rising cost of tickets. These include rising aircraft fuel prices as well as seasonal effects (such as Valentine’s Day, Easter/Passover, spring break, and end-of-school travel). Naturally, there is rising demand from the millions of people who have been forced to lock down for months.
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The desire of the airlines to turn a profit after two years of losses is another factor driving price hikes. Indeed, in order to preserve their airport slots, European airlines have been flying almost empty during the lockdown and need to turn the tides around in profit.
Rising fuel costs are putting additional pressure on costs. According to the Energy Information Administration, kerosene-type jet fuel prices are more than four times higher per gallon in mid-June than they were at the pandemic’s lowest point in late April 2020.
The greatest costs for airlines are fuel and labour, and as these costs rise, tickets frequently go as well. As with all crises, COVID-19 forced airlines to curtail capacity in 2020 by reducing both the quantity of tickets that were available and their labour forces. Until the industry can keep up with demand, those decisions are likely to result in increased ticket costs.