Airlines will once again pass on the increased costs to users. Airfare prices will rise in the short term, representatives of the French aviation sector warned on Friday.
While SNCF is announcing an average 5% increase in TGV fares, airfare from France jumped 18.9% year-over-year, according to the latest index released in September by the Directorate General of Civil Aviation. In aggregate, since the beginning of the year, the increase in prices is 14.2% for intracity communications and 16.7% between mainland France and abroad. Growth even reached 24.3% on the average international network.
“We have an obligation, we have no choice,” explained Marc Roche, CEO of Air Caraïbes and French Bee, on behalf of the members of the National Federation of Aviation and its Professions (Fnam) during the organisation’s press conference. “We are seeing a general inflation in payroll costs (…) this is very pressing,” the business manager said, also referring to the additional costs caused by the closure of Russian airspace on communication lines with Asia.
“Mechanical” cost transfer
Therefore, “we should expect the new price increase to simply and mechanically endure this cost increase that we are experiencing,” Marc Roche warned. “Customers, I think, kind of understand this,” and demand is unabated, except for a few segments of customers, in his assessment: “good quality” winter bookings, reflecting “a very clear desire to travel,” especially for family and leisure reasons for “ solar” directions and the USA.
Airlines around the world, after two years of acute Covid-19 crisis devastating their coffers, are now facing an energy crisis with “oil gone by about 50% in a year,” Marc Roche stressed, while this point represents about a quarter of the cost of air carriers.
Added to this is the growth of the dollar, which has been hit hard by a sector in which 40% of spending is made in this currency: in addition to oil, we are talking, in particular, about spare parts based on raw materials such as steel and titanium, the prices of which are also rose sharply.
Source: Le Parisien
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