According to a Financial Times analysis of data from aviation company Cirium, ticket prices on over 600 of the world’s most popular routes rose by 27,4% between February 2022 and February 2023. This comes after total losses of airlines around the world was an estimated US$200bn (R3,74trn) between 2020 and 2022, according to Iata figures.
The FT reports that US inflation had increased at less than half that over the same period.
The data used analysed prices on popular routes across the world and used average one-way fares in economy, excluding taxes and fees.
Compared with pre-pandemic levels, it found major price hikes across many routes this year.
For example, an average one-way economy-class transatlantic flight from Heathrow to JFK International Airport in February this year cost $343 (R6 425) – 23% more than in February 2019. Fares between New York and Singapore were 45% higher at $887 (R16 162), and tickets for Dubai-Frankfurt flights were up by 51% at $360 (R6 719 ).
It further found that 60 routes with one or more leg in North America had set new highs in the past year. Fares between Miami and Bridgetown, Barbados, grew 126% in the year to February and ticket prices for Los Angeles flights to Mexico City International have almost doubled.
This represents the highest year-on-year changes in airfares since 2014.
That passengers are willing to pay high fares demonstrates the great rebound in demand for flying over the past year and that airlines are seeing a sharp turnaround after the pandemic.
The newspaper says another reason for the rise in prices is because many carriers have been slow in rebuilding pre-pandemic flight schedules, partly because of the global aircraft shortage.
Analysts say the restricted seat supply at a time of high demand helps support prices and stops an excess of new capacity driving down fares.
“Airlines are running out of hyperbole to describe demand strength,” said US stock analyst, Alex Irving.
