“The ticket prices will continue to remain at a premium, albeit possibly seeing slight reductions due to a cooling supply in the off-peak season. High operating costs attributed to oil prices and personnel expenses are making it difficult for airfares to decrease significantly,” stated John Grant, head of analysis at OAG travel data company.
According to CNBC news agency, the rapid growth rate after the COVID-19 period is about to end. The aviation industry will enter an era of “new normal”.
“2024 is projected to mark the end of the impressive annual growth that characterized the recovery period in 2021-2023,” stated a report by the International Air Transport Association (IATA).
Airline ticket prices remain high this year.
According to Amex GBT Consulting, as entertainment demand diminishes and the phenomenon of ‘revenge travel’ subsides, supply and demand in the commercial aviation sector are reaching equilibrium.
“The Trend Report” by FCM Consulting in the third quarter of 2023 indicates that global airfare prices are expected to increase by 3-7% in 2024 as airlines grapple with high fuel costs, accompanied by sustainability-related changes.
John Grant, head of analysis at OAG travel data company, noted that passengers should not expect significant changes this year.
“The ticket prices will continue to remain at a premium, albeit possibly seeing slight reductions due to a cooling supply in the off-peak season. High operating costs attributed to oil prices and personnel expenses are making it difficult for airfares to decrease significantly,” stated John Grant.
According to the IATA report, airlines enjoyed high profits in 2023, but the situation may be less favorable in 2024. Reports indicate that the aviation industry is facing various pressures including geopolitical issues, supply chain disruptions, staffing shortages, as well as rising fuel and labor costs.
However, pent-up demand for business travel from the pandemic era will provide positive signals for airlines. IATA’s forecast suggests that global revenue will reach a record $964 billion in 2024, with net profits at $25.7 billion.
@Cafef
Related
Source: Vietnam Insider