Travel demand surges after pandemic, global airfares highest in decades
After the COVID-19 pandemic, the travel demand of tourists is at an all-time high
The world has entered summer which is also the peak tourist season. The demand for air travel is increasing, but global travelers are facing very high airfares, even the highest in decades in some countries.
According to Forbes, published global airfares increased by more than 50% compared to last year. In the US, airfares are up 33% this year from last year, the biggest year-over-year increase since 1980.
According to the Mastercard Institute of Economics, compared to 2019, airfares from Singapore were on average 27% higher in April this year, while flights from Australia were 20% higher.
There are many reasons for the high price of airline tickets. The first is due to the increase in fuel prices. Fuel currently accounts for 38% of a mid-range airline’s costs, according to Bloomberg, which for some low-cost carriers can be as high as 50%.
Visitors are willing to pay even though ticket prices are constantly increasing. Photo – Getty
Another cause is the shortage of manpower taking place throughout the aviation industry. As in Europe, major airports have faced constant delays and cancellations after failing to hire the right staff. This disrupts airlines’ schedules and adds costs.
Another equally important factor is the demand for revenue by airlines. According to Bloomberg, airlines globally have lost more than $200 billion over the past three years due to COVID-19.
Mr. Paul Griffiths – CEO of Dubai Airport: “When everything becomes more expensive, it is obvious that airlines that want to make a profit will have to pass some of the costs on to customers. Aviation is a business. The international industry is highly competitive, so some carriers will choose to gain market share and not pass all the costs on to passengers, but others will need to restore profits to pre-pandemic levels and raise prices. ticket”.
Experts said that despite the high price of air tickets, the demand is still increasing strongly. According to International Air Transport Association general manager Willie Walsh, some consumers are using the cost of trips that could not be made in the past for this year’s trips.
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