If you’re hoping that airline ticket prices will drop in the near future and you’ll be able to take a nice vacation, don’t. Ticket prices may increase further in the future.
Experts associated with the aviation industry have warned that the price of air travel tickets may increase further in the future. The Covid epidemic, high oil prices in the international markets and uncertainty due to armed conflicts are among the top reasons for this situation. Willie Walsh, director general of the International Air Transport Association, said that if China does not ease the restrictions imposed by the coronavirus by 2023, the economic recovery of airlines may be delayed even more.
IATA Chairman and Qatar Airways Chief Executive Akbar Al Bakr also expressed the same concerns. According to him, travelers around the world can expect further price hikes in the coming months as the losses of airline companies have increased due to the increase in fuel prices in the last two years.
Speaking at a news conference at an IATA meeting, Walsh said the industry had some hope but if jet fuel prices continued to rise, the only solution companies would have would be to adjust ticket prices accordingly. IATA chief Akbar al-Bakar said price pressures will continue until 2023 or beyond. IATA says airlines lost about $180 billion in 2020 and 2021 and are expected to lose another $9.7 billion this year.
Akbar Al Bakr’s company made a profit of $1.5 billion this year. He derided governments for ‘misleading’ the public about the environmental harms of air travel. He said that in many European countries, measures like ending flights of less than 500 km are also causing an increase in cost. According to him, if the price of the new eco-friendly fuel is even higher, it will also increase the pressure on the ticket.
Willie Walsh, director-general of the International Air Transport Association, said Hong Kong’s aviation sector had been “devastated” by the Covid restrictions. The city is no longer a hub for air travel and Cathay Pacific Airlines has lost its former importance. Will not be able to.