These price increases should not slow down the recovery of the sector in the short to medium term, it was said.
The rise in oil prices is “a positive indicator” for airlines because it signals the resumption of economic growth, but it will have an impact on ticket prices, their association, IATA, said on Wednesday.
“Rising 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 CEO, during a video press conference.
“The airlines have suffered enormous losses in recent months, therefore, it is impossible for these companies to absorb this increase: it must have an impact on consumers and that will have an impact on the prices” of tickets, he added.
These price increases should not slow down the sector’s recovery in the short to medium term, he said. Traffic should pick up “as travel restrictions are lifted” but could eventually “lead to lower demand in the long run.”
IATA notes a “moderate rebound” in air traffic in September, which corresponds to 53.4% less than its level in September 2019, compared to a 56% drop between August 2019 and August 2021.
The decline 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 ones continue to be highly affected (-69%).
The lifting of travel bans has been “slower than we would like and slower than we think science would allow,” said Willie Walsh, who celebrated the reopening of travel to the United States on Monday, November 8, that he expected rather for the beginning of the summer.
The airline executives he has spoken to 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 9% in September, compared to 2019. (I)
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