Caught in a vice between the high costs of kerosene (whose price has risen 89% in one year) and the rise in taxes, airlines have no choice but to raise their prices.
And the successive rises begin to weigh. According to figures from the DGAC (Directorate General of Civil Aviation), in June, the increase in prices at departure from France “continues at a constant rate” of 26.4% for all destinations and 14.5% in the accumulated since the beginning of the year.
This figure coincides with that of the INSEE, which estimates that prices rose by +26.5% in one year in June, compared to +19.3% in May).
+22% compared to 2019
As in May, this increase was observed for all destinations, some being more marked than others. Compared to June 2019 (the last year in which air transport was not affected by covid-19), the price increase stands at 22.3%.
Leaving mainland France, prices increased by 29.3% on the national network and 23.9% on the international network compared to June 2021.
In the national network, prices increased by 23.8% (5.7% accumulated) in the intra-metropolitan links, and 28.4% (14.8% accumulated) in the links to Overseas.
The increase in the international network is 23.9% between June 2021 and June 2022 and +14.2% in the accumulated.
The increase is once again driven by the international medium radio network, for which the registered increase is 25.1% (+13.8% in total). “The return of leisure traffic supported by low-cost airlines is driving this development in particular,” says the DGAC.
From abroad, the outbreak continues
The international long-haul network registered a less pronounced increase, of 17.1% (+10.2% in total). “The increases are of low amplitude towards North America, unlike those observed for flights to Asia/Pacific (some destinations are still impacted by the war with longer flight times) or Latin America,” it can be read.
In departures from all the overseas departments, the rise in the prices of airline tickets continued and reached 24.7% (+13.8% accumulated) in June. This trend affects the four departments differently. It is still at the exit of Réunion where the prices show the strongest increases, with +32.8%.
According to a study by Allianz Trade, the prices of airline tickets offered by European airlines should grow +21% this year and peak in the first quarter of 2023.
Obviously, this increase should make it possible to boost the operators’ billing by 102% in one year, estimates the study. A balloon of oxygen that, however, risks being insufficient “to prevent European airlines from experiencing a third consecutive year of net losses (-9.7 billion dollars). Thus, European airlines will not reach the break-even point before 2023”, it can be read.
If these increases still do not weigh on traffic, currently driven by vacations and the desire to travel of consumers, nothing says that they will not end up discouraging travelers.
Source: BFM TV
