Airline ticket prices to rise by hundreds of euros this winter for travel outside Europe
Flying within Europe will cost dozens of euros more per ticket this winter, while intercontinental travel will likely see prices rise by hundreds, industry experts told De Telegraaf. The price increases will not only be because of the rising price of fuel, but also because of tax and fee hikes.
"We expect price increases of between 10 and 20 percent in the winter as a result of the flight tax, the sharp increase in airport charges and more expensive kerosene," said Marnix Fruitema of aviation representative organization Barin in an interview with the newspaper.
A somewhat longer distance trip to the Canary Islands or Cape Verde will be about 100 euros more expensive this winter, and about 50 to 60 euros more expensive next summer. “This means that travel is becoming more expensive, while purchasing power is falling. The consumer will take a step back,” said Corendon’s Steven van der Heijden to De Telegraaf.
Oil price up 50%, Schiphol fees rising by 37%, Departure tax will triple
The rising cost of fuel is down to the oil price, which is about 50 percent higher than in January. Airlines which hedged their bets by securing advanced fixed-price contracts on fuel before the surge have been able to largely avoid raising their prices thus far, but that will soon change, the newspaper said. Van der Heijden said that Corendon secured most of its fuel last year at about 700 dollars per ton. Since then, it rose to 1,100 dollars at a time when the euro has lost value against the dollar. “Fortunately, we are now seeing a slightly declining trend as the oil price is falling,” he said.
Take-off and landing fees at Schiphol Airport will also rise by 37 percent over the next three years, with the airport originally having planned to raise fees by 42 percent. The rate hike will be implemented to shore up revenue, as Schiphol said it lost out on 1.6 billion euros in income during the first two years of the coronavirus pandemic. EasyJet previously estimated that its passengers will spend about 40 euros in charges on top of the price of a ticket.
Additionally, the tax on airline tickets for most departing passengers will jump from 8 euros this year to 24 euros next year. Finance Minister Sigrid Kaag said in the past she believed that will make the more sustainable option of traveling by train a more attractive choice than flying.
Low prices and deals will not disappear completely
EasyJet’s Netherlands director, William Vet, said that there will still be cheap tickets. The airline counts on selling out flights to help cover other price increases, and generates additional revenue by unbundling its fare from added fees, like meal service, reserved seating, and baggage charges.
Ticket prices on EasyJet have risen by about 8 percent, De Telegraaf reported, and other carriers need to remain vigilant with their pricing. "On some routes, prices simply cannot be increased because there is a lot of competition," a KLM spokesperson said to the newspaper.
Transavia CEO Marcel de Nooijer commented that he would like to at least see the tax increase on departing passengers put towards sustainable investments in flying. “It is a pity that the government does not allow the flight tax to flow back into a contribution for cleaner aviation,” he said.
