A windfall effect for airlines whose finances have been damaged during the long health crisis. Thus, the real increase in the price of kerosene is a good alibi to push the price of plane tickets upwards.
War in Ukraine and rise in the price of kerosene drive up the price of plane tickets
The increase in the price of plane tickets would be around 14%! Be much more than theinflation (5.1% HICP over one year in France in March 2022). The rise in ticket prices is even more marked for Reunion, but all destinations are affected. In question, the price of kerosene, the recovery of the air sector directly impacted by the health crisis and the closure of Ukraine / Russia airspace, forcing certain international flights to make long detours.
Up to 30% price increase for Reunion
In Orly (Val-de-Marne), Saturday morning April 23, vacationers leaving for Guadeloupe do not hide their exasperation with the prices. In one year, the prices of flights departing from France to foreign countries have increased on average by 6.1% and by +13.5% for flights to overseas territories. In Reunion, where the price increase is the highest, more than 30%, travelers find it difficult to understand. “When you have children in mainland France, it’s unacceptable“, judges a woman, remarks reported by FranceInfo. According to Marc Rochet, the president of Air Caraïbes, the average price of tickets for his company will increase by 15 to 20%. At Air France, an increase of 40 to 100 euros on long-haul tickets is already effective.
Oil prices and airspace closures
According to Jean-Pierre Sauvage, president of the Board of Airlines France, several reasons explain this surge in the price of plane tickets. First of all, since the start of the war, oil prices have soared. Fuel accounts for up to 35% of airline operating costs, according to the association Airlines for Europe”. Another consequence of the war in Ukraine, the closure of the Russian airspace which leads to a modification of the routes of the planes, and therefore an additional cost of exploitation and consumption of oil. However, according to Jean-Louis Barroux, president of APG Global Associates and air specialist, ” only 12% of flights in Western Europe are affected ».
The rise in prices could continue
The airlines are justified by the context of inflation and the rise in energy prices linked to the war in Ukraine. This is particularly true for the Overseas Territories, according to Arnaud Aymé, transport specialist for SIA Partners. “On departure from overseas, there are mainly long-haul destinations, yet the share of kerosene in the total cost of a flight (…) represents up to half of the total cost of the flight“, he explains. Even by excluding the cost of fuel, the rise in prices could continue, because after two years of health crisis, the companies also need to recover their financial health.
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