Plane ticket prices are increasing again… and are not likely to fall

2023-11-08 14:22:36

The decline was short-lived. Air ticket prices increased by 5.8% in September according to figures published on October 17 by the General Directorate of Civil Aviation and relayed by Capital. Enough to erase the drop in prices of 2.3% over one year observed in July and the too slight drop in prices in August (-0.1%). Thus, since the start of the year, ticket prices have increased by 10.6%.

Companies are affected by increases in the price of kerosene, the national federation of aviation and its professions (Fnam) indicated this Tuesday during a press conference. This is confirmed by Marc Rochet, president of the Fnam competitiveness commission and director of the Dubreuil group (Air Caraibes and French Bee). “As the cost of kerosene represents 30% to 40% of our costs, we are obliged to pass it on to our sales prices,” said the manager.

Other increases impact ticket prices

The rise in fuel prices is not the only factor driving up the bill. Maintenance, labor costs, fees or taxes… “Increases in general costs appear in all airline expense items,” explained Fnam. In this context, the federation does not want to hear regarding the new taxation of transport infrastructure managers that the government wishes to introduce in the finance bill for 2024 to finance the ecological transition. “It is the airlines which will pay this tax in almost its entirety”, underlined Fnam, and therefore ultimately, the customers of these companies, who will not reduce their margins which are already considered “low”.

The final factor stimulating the rise in prices is demand, which has almost reached 2019 figures (95% of the levels four years ago, before the health crisis, or 7% more than in 2022). This winter, companies should almost return to the pace of 2019. In this context, they have no reason to lower ticket prices.

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