Why are airline ticket prices so high?

After two years of restrictions, air travellers across the globe are eager to explore both domestic and international destinations, and executive travellers are keen to get back to business.

This high demand for tickets has caught carriers off guard as they struggle to recover from the implications of this extended period of inactivity.

Booking requests have quickly resurged to over 80% of pre-pandemic levels, while airlines have only managed to reinstitute 65% of their flights. Add to that the demise of local carriers Kulula, Mango, SA Express, and Comair, as well as SA Airlines slow return to the market, and you’ve got a shortage of around 30% of seats in 2022.

This has resulted in the ideal disparity between supply and demand that drives prices sky-high.

The Ukraine war is also placing pressure on fuel supply, pushing jet fuel prices way above normal levels.

The changing face of SA air travel

SA Airlines fortunate enough to avoid financial ruin during the pandemic or emerge from business rescue intact are slowly attempting to rectify this issue. These noble ambitions are hampered by lengthy application processes and the cost of buying new jets to service these routes.

Despite these challenges, the Air Services Licensing Council has recently approved a number of flights which should bring some relief to the domestic travel market. As a result, domestic carriers are rapidly expanding their fleets.

FlySafair is adding six additional Boeing 737-800 aircraft by the end of April, SAA is boosting its fleet with three Airbus A320 planes by the end of the year, and Airlink has already introduced an extra three Embraer E195 aircraft to its fleet.

Courtesy of Bizcommunity – read full article here.