Plane tickets are set to become more expensive as a result of rising crude oil prices and labour costs, warned airline bosses at an annual gathering of aviation industry leaders.
Doug Parker, the CEO of American Airlines, cautioned attendees of the Annual General Meeting of the International Air Transport Association (IATA) that ticket prices will go up as airlines reduce capacity in order to keep fuel costs down.
The IATA predicted that fuel costs will increase by 25 per cent this year. With the price of oil accounting for 24 per cent of airlines’ total operating expenditure, it’s unsurprising that airlines should begin passing some of those expenses onto passengers.
The news comes just months after Air Passenger Duty (APD) tax was increased on all flights leaving the UK with a final destination of over 2,000 miles away, resulting in a backlash from travel and aviation authorities who argue that UK business travellers are already paying the highest tax of this kind in the world.
Fuel and fare increases are expected to occur across the industry, although air travel is forecast to grow by 7 per cent in 2018.
Despite this, IATA predicted that global airlines would reap a collective net profit of £25.3 billion in 2018.
The average return airfare (before surcharges and tax) in 2018 is predicted to be £285, with global spending on tourism enabled by air travel predicted to increase by 10 per cent to £594 billion this year.
Jack Sheldon, who runs Jack’s Flight Club, a website that identifies the cheapest flights from the UK and Ireland, spoke to The Independent last year and gave his tips for securing the cheapest flights available. These include making bookings through travel agencies, rather than booking directly with airlines, knowing what time of year is best to book for your preferred destination and connecting in a European city for long-haul flights.
