The IATA chief recently warned that the prices of airline tickets will go up “without a doubt” as fuel costs rise. Oil prices have surged as economies recover from the Covid pandemic and the war in Ukraine.
New Delhi: The IATA chief recently warned that the prices of airline tickets will go up “without a doubt” as fuel costs rise. Oil prices have surged as economies recover from the Covid pandemic and the war in Ukraine.
Air travel became costlier by 50% in the last few months
According to a media report, Willie Walsh, Director General of the International Air Transport Association (IATA), said that this cost will be passed on to the consumers. “Flight will be more expensive for the consumers, no doubt about it,” he said. He added that the ‘higher price of oil’ would be reflected in ‘higher ticket prices.’ Due to the rise in fuel prices, domestic and international airfares in India have seen a rise of up to 50 per cent in the last few months.
Airfares at American Airlines, Delta Air Lines and United Airlines (the three largest US domestic carriers) for the week ending May 23 increased compared to a year earlier, according to an analysis by Cowen, a financial services firm, reports CBS. An increase of about 50 percent. Cowen tracked nearly 300 routes across four different fare categories for the carrier using data from New York-based Harrell Associates, which tracks airline pricing trends.
The effect of the ongoing war between Ukraine and Russia is also visible
According to IATA, India recorded a shortfall of 0.3 per cent MOM in May. Year-on-year traffic growth in this domestic market was 405.7 percent. Oil prices were already rising as demand picked up again in economies recovering from the Covid pandemic.
The outcome of the war in Ukraine has pushed up prices further. The BBC reported that the US has announced a complete ban on oil imports from Russia, while Britain is to end Russian supplies by the end of the year. EU leaders have said they will halt most Russian oil imports by the end of 2022.
This means that the demand for oil from other producers has increased, driving the prices higher.
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