Delta: Flights will see price increases of up to 30% this summer

Rising fuel costs, rising demand and crew shortages are putting pressure on the increase flight prices by as much as 30% in the summer months, suggested Delta Airlines CEO Ed Bastian.

Even with fewer flights, Delta expects second-quarter revenue to return to pre-pandemic 2019 levels. Per-seat revenue is forecast up to 8% higher than planned, according to the airline, which does not translate into benefits. for passengers.

“We expect prices this summer to probably go up between 25% and 30% on average,” Ed Bastian said when speaking to investors.

“We’ve never seen anything on this scale,” he added.

According to statistics, airline tickets in the United States have increased by 25% in the last 12 months. In April alone, airfares rose an incredible 16.8%.

transatlantic delta flight

Thousands of travelers have taken to social media to express their dissatisfaction with the price hike, but many airline officials are hesitant to suggest that it will prevent them from going this year.

“If you’re worried about prices destroying demand, you’re betting against history,” he said. said Scott Kirby, CEO of United Airlines.

Airfares will return to 2014 levels only when adjusted for inflation, he said.

Helane Becker, Senior Research Analyst at Cowen, said Bloomberg TV on Monday: “We are worried about September and what happens in the fall. Avgas prices are going up and up. Airlines are finding that labor costs are going up, fuel costs are going up, airport costs are going up. They are facing huge inflationary pressures and need to raise ticket prices and at some point the consumer will say ‘ok, we’ve done our trip and we’re done, we can’t (afford) to fly again’”,

What should travelers do?

The increase in domestic demand in the United States is primarily responsible for the increase in airfares. While some Americans are traveling abroad in the wake of the COVID-19 pandemic, the numbers are still down.

As a result, international flight fares in the United States are lower than they were before the pandemic.

That means cheap flights to Europe, South America and even the Caribbean or Mexico are still available.

Americans who wish to travel around Europe may have to deal with the same issues.

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Airfares in Europe could rise by a “high single-digit percentage,” according to Michael O’Leary, CEO of Ryanair.

He said: “It seems to us that there will be higher prices in this peak summer period because there is a lot of demand for Europe’s beaches and these price increases will continue for the time being.”

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