There are indications that the cost of aircraft tickets may still increase due to a shortage of refineries and the airlines' financial situation. William Walsh, the director-general of the International Air Transport Association (IATA) has warned.
The capacity of refineries decreased by 5.4% in 2022. According to Continental CEO Brian A. Walsh. the airline sector is "of concern" over the pandemic's effect on refining capacity. Although ticket costs have increased for customers, airlines may not always be profiting.
And given the
financial state of many airlines, Walsh said, "It’s not that airlines are
making money; they are just passing on a cost that they can’t absorb
themselves and that they can’t avoid."
Airfare increased by
18.6% in April alone, according to the Bureau of Labor Statistics. The news of a
military mobilization by Russia may result in even more expensive ticket
pricing. The expansion of the confrontation between Russia and Ukraine is,
according to Qatar Airways CEO Akbar Al Baker, his biggest worry.
"For me, the
biggest worry is the conflict spreading, which [will then] fuel inflation,
putting more pressure on the supply chain," he added. "The net result
will be fewer passengers on my airplane." Al Baker said.
"It also worries
me, the instability of the oil price, which I don’t want to pass on to the
passengers, which will then discourage them from traveling. We will continue
to fly to Russia, and we will continue to serve the people. We are not a
political institution. We are an industry that serves the common people.”
"I don't mind paying a little more, but they can't pay four or five times the price of a regular F-gas. F-gas, also known as fluorinated gases, are man-made gases that are applied to various industrial uses. If we are pushed to do that, you as a passenger are going to pay for it," he added.
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