Air travel has become essential for business, leisure and every possible reason in between. The cost of airfare, however, has soared above what everybody expected with the pandemic. Airline tickets have become more unaffordable, and those who attempted to purchase a flight in recent months may have considered this. Why are airline tickets so high right now?
The airline industry has seen a considerable downturn due to the pandemic, with passenger numbers dropping significantly. Still, the costs associated with operating aircraft, maintaining routes, and finally keeping staff employed have been passing along to the consumer. As a result, prices have skyrocketed and airlines are only willing to offer a limited number of low-cost seats to consumers.
Airlines have had to find ways to make up for the steep decline in passenger demand, so in some areas, reduced supply has pushed ticket prices upwards, as they attempt to recoup their losses. To their credit, airlines are running on fewer routes to avoid further loss, which is a smart way to minimize the impact while keeping their networks in some ways operable.
Outbreaks continue to linger in some countries, causing travel restrictions to rise and restrict incoming visitors. The limited number of available flight slots combined with mandatory on-site tests, quarantine periods, or even rejections means that the airline is trying to compensate by extending profit margins on existing passengers through the ticket prices.
Some airlines, in contrast, may have implemented travel insurance costs as a must-have attribute when a traveler books a ticket post-COVID. Travel insurance costs may vary depending on the destination, trip length, travel time, etc. Therefore, simply offering projected travel expenses and then piling insurance costs on top may increase the end cost of a flight ticket.
Lastly, the pricing of ticket prices is dynamic, meaning that an airplane ticket today could be wildly expensive tomorrow. Typically posted tickets will rise as the departure date approaches as a way to leverage those who need or wish to book last-minute. This technique, called Yield Management, enables airlines to set ticket pricing that varies according to the day of the week and the time of day, as well as a passenger’s destination. As a result, the cost of a flight from New York to Los Angeles today will differ from the cost of the same flight next week.
In conclusion, while airlines want to keep prices down to remain competitive or broaden their market share, they also continue to face financial and logistical issues due to the pandemic. Airline ticket pricing can vary according to the destination, trip duration, travel time, and the number of available flights. Nonetheless, fluctuations in ticket pricing are normal, and with the right preparation, travelers can still score a deal while reaching their desired destination.
