Revenge journey .. Crazy increase in air ticket prices

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For more than two years, the Corona virus has been the most popular topic and with the closure of closure procedures, finding an airline ticket has become extremely difficult, with a new term known as the “revenge journey”.

Despite the high prices of plane tickets, travel fans choose to afford the high costs after a long break.

Demand has exceeded expectations, Delta Airlines CEO Ed Bastian told an airline industry conference last week, noting that prices this summer could be 30 percent higher than their pre-pandemic levels.

He added that the demand does not differentiate between the categories of travelers or their goals, as the industry has shown high demand, whether for business or international travel, and others.

global movement
A Bloomberg report shows that the price of travel tickets varies by region, as the price of a flight ticket from Hong Kong to London has increased by about 5 times from pre-epidemic levels, and the ticket price has reached $ 5,360, while the price of a flight ticket between New York and London totaled $ 2,000.

The prices were also insane, especially for travelers from Singapore to Berlin, as the price of a round-trip ticket to the German capital went up to more than $ 3600.

A study by the Mastercard Institute of Economics found that the cost of flying from Singapore was on average 27 per cent higher in April compared to 2019, while flights from Australia were 20 per cent higher.

Studies show for several reasons the high prices and not all are under the control of airlines.

Although most countries have eased international travel restrictions, airlines are still cautious about returning all their stopped aircraft.

This is especially true for giant aircraft such as the superbumbo of the older Airbus A380 and Boeing 747-8, as airlines are turning to more fuel-efficient models like the A350s and 787 Dreamliners.

Airlines have also reduced the number of their airlines during the Corona epidemic, prompting passengers to book flights involving more than one transit flight to reach their distant destinations, while before that it was possible to travel directly .

With fewer planes in the sky, there are fewer places to meet demand for the pickup truck, which in turn has pushed up prices.

Fuel price increase
On the other hand, the Russian attack on Ukraine has exacerbated the steady rise in crude oil prices over the past 18 months.

Aircraft fuel now accounts for up to 38% of average airline costs, up from 27% in the years before 2019.

And for some low-cost airlines, it can be up to 50 percent.

Analysts at Citigroup said in March that some investors believe airlines may seek to raise fuel tariffs as housing.

IATA CEO Willie Walsh said last month that some travelers are taking advantage of deferred vacation budgets and upgrading to more expensive cabins for leisure travel.

Lack of staff
Hundreds of thousands of pilots, flight attendants, ground personnel and other aviation workers have lost their jobs over the past two years. As travel increases, the industry now finds itself incapable of hiring fast enough to allow smooth operations at pre-pandemic levels.

Singapore Changi Airport – regularly voted the best airport in the world – is looking to employ more than 6,600 people. Many of the laid-off workers have found other, less volatile jobs and are not ready to return to a cyclical industry.

To demonstrate this, the airport has offered a $ 25,000 union bonus to associate police officers, a job that pays a maximum of $ 3,700 a month.

In the United States, smaller regional airlines may not be able to fly at full capacity because larger airlines have employed more pilots. Hundreds of flights have been canceled in the UK, disrupting holiday plans and leading to long delays and sightings of passengers sleeping at airports. In Europe, major airports faced delays and cancellations as they failed to recruit enough staff. This disrupted airline timetables and increased costs.

budget reform
Aviation is a capital-intensive industry with historically low margins, and Covid has made this operating environment even more difficult, with airlines losing more than $ 200 billion globally in the three years to 2022.

Higher prices offer carriers a way to recover from losses and return to high levels.

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