The crisis in the aviation sector will cause air travel prices to continue to rise. Who says it is the director general of the International Air Transport Association (IATA), William Walshwhich guarantees that the drop in refining capacity, recorded during the pandemic, and the increase in the cost of fuel are “worrying” signs for the sector.
In an interview with CNBC, Walsh says that just because passengers pay higher prices for airline tickets, that it does not mean that “the airlines are making money”. According to a study by the US Bureau of Labor Statistics, admissions to the US increased 25% in 2021, with growth of 18.6% in April alone.
Due to the financial situation of many airlines, they are only passing on a cost to consumers that they cannot absorb for themselves and cannot avoid,” says William Walsh.
Also in an interview with CNBC, Akbar Al Baker, CEO of Qatar Airways, said that the airlines’ biggest concern is the war in Ukraine, devaluing the policies against Covid-19 imposed in China. However the The Middle Eastern company does not shy away from continuing to fly to Russia, because it is “an industry that serves ordinary people.”
For me, the biggest concern is the spread of the conflict, which will drive inflation and put more pressure on value chains”, which will translate into “fewer passengers on my plane”, said Al Baker. “I am also concerned about the instability of the price of oil, which I do not want to pass on to passengers, which will make them not want to travel.”
To solve the problem associated with fuel prices, Al Baker believes that more should be invested in sustainable energy, in which Qatar Airways is “willing to invest” as long as “reasonable prices” are practiced. If not, passengers will “pay for it”.
IATA also shares this opinion, since in 2021 it established a goal for the air transport industry to achieve zero carbon emissions by 2050. “Sustainable jet fuels represent the best option the industry has to achieve our 2050 goal,” Walsh said.
Recently, Ryanair defended that the business will continue to grow, although more slowly: “people will continue to want to travel”. The president of the company confirmed that the pressure of fuel costs and carbon taxes will increase ticket prices.
Will air travel end at 9.99 euros? No, but they will be a bit more expensive, says Ryanair president
Source: Observadora
