At least 20% increase for its base rate. Carsten Spohr, CEO of LufthansaLufthansa's Chief Executive Officer recently made the announcement during the presentation of the German national airline's 3rd quarter results. According to Lufthansa's CEO, the basic price of a single ticket in Europe is set to rise from €29 to €35, indicating that "the price of a one-way ticket in Europe is set to rise from €29 to €35". when the price of a ticket for a two-hour flight is less than the price of two hours' parking, there's something wrong. "he said. An introductory fare of €35 would provide a healthier environment for airlines. Especially as price of oil will have practically climbed from 30% over one yearThe average price of a barrel of oil at the beginning of the year was 65 dollars, which has now reached over 86 dollars in early October. By mid-November, however, the barrel had lost all its gains of the year, with the price fluctuating around 67 dollars. But the economic and political tensions Such as they are, caution is called for when it comes to price trends.
In addition to this rise in oil prices, the relative strong dollar against many currencies, including the euro, which has lost an average of 5 % in value against its US counterpart this year. Lastly, tensions over world trade, which is now being dented by protectionismshould also have a negative impact on demand for business travelThis segment is generally the most lucrative for airlines.
The fact is that the CEO of Lufthansa is not alone in thinking about fare increases. At the same time as Carsten Spohr was talking about the likely increase in air fares in 2019, the CEO of the low-cost airline Norwegian added its voice to the chorus of pro-hikes. During the presentation of its third-quarter results, Norwegian CEO Bjørn Kjos indicated that there were "no significant increases". no chance He went on to say that "the airlines will be able to continue as they did in 2018 without increasing their fares". Although he admitted that he did not know exactly when the upward spiral would begin. Norwegian saw its paraffin bill rise by 85% over one year.
In July, the Global Business Travel Association (GBTA) in cooperation with Carlson Wagonlit Travel (CWT) predicted a 2.7% increase in air fares on average worldwide in 2019. Bad luck, that would beEurope which is expected to see the strongest increases at 4.7%, followed by Asia with a forecast ticket increase of 3.2%. North America, on the other hand, is expected to see a moderate increase of 1.8%, while air fares are expected to fall by 2% in Latin America and in Africa and the Middle East.
