Higher Europe air fares 'inevitable', industry head says
The head of Europe's main airline trade body said higher air fares on the continent are 'inevitable'. Rising fuel prices, environmental taxes and airspace capacity constraints are pushing ticket costs up. Executives said passengers should expect more expensive flights in the summer season.
The head of Europe's main airline trade group, A4E, said higher air fares on the continent are inevitable in the months ahead. The association's chief said jet fuel prices were at their highest levels in three years due to the oil swings caused by the Iran war, and that carriers would have to pass through a significant portion of the additional cost to passengers.
The European Union's environmental tax package, the Sustainable Aviation Fuel (SAF) mandate and emissions-trading-scheme obligations also stand out as structural cost pressures added to ticket prices. Delays in airspace modernisation and air-traffic-control capacity problems are also reducing rotation efficiency.
The association said the summer season would greet passengers with much more expensive tickets than last year, sharing a projection of 8 to 12 per cent increases in economy-class fares. Consumer organisations have warned that the price increases could disproportionately affect lower-income households. The European Commission has announced that it is working on an additional consumer protection framework.
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