Airline tickets will go up because of high oil prices, says association

The rise in oil prices is “a positive indicator” for airlines because it points to the resumption of economic growth, but it will have an impact on ticket prices, said its association Iata (International Air Transport Association) on Wednesday. fair (3).

“The increase in oil prices as we know it today is probably a positive indicator for the (airline) sector, as it generally reflects an increase in economic demand,” said Willie Walsh, Iata’s director general, during a video press conference .

“Airlines have suffered huge losses in recent months, so it is impossible for these airlines to absorb this increase: it must pass on to consumers and this will have an impact on ticket prices,” he added.

These price increases should not slow the sector’s recovery in the short to medium term, he said. Traffic is expected to recover “as travel restrictions are removed” but could “lead to lower demand in the long run”.

Iata notes a “moderate recovery” in air traffic in September, which is 53.4% ​​less than its level in September 2019, compared to a drop of 56% between August 2019 and August 2021.

The fall in September was 69% in Asia, 50% in Europe and 30.5% in North America over two years.

By activity, domestic flights continue their recovery (-24% in two years), but international flights are still highly affected (-69%).

Lifting travel bans was “slower than we wanted and slower than we thought science would allow,” said Willie Walsh, who celebrated the reopening of travel to the United States next Monday, November 8, he was waiting for the beginning of the northern summer (winter in Brazil).

The airline executives he spoke with are “more optimistic about the resumption of business travel,” he said.

Air freight continues to grow, which “should continue,” according to Walsh. It was up with 9% in September, compared to 2019.