Aviation Higher fees and costs are likely to make flying more expensive
Flying is likely to become more expensive in the coming year. This is the assumption of the airlines' umbrella organization IATA. The reasons include rising costs for wages, materials, air traffic control and security checks.
10.12.2024, 13:34
SDA
Air passengers will have to prepare for higher ticket prices as costs continue to rise, said IATA Chief Economist Marie Owens Thomsen in Geneva on Tuesday. On the one hand, the industry is under price pressure from above because it has little influence on many prices. On the other hand, competitive pressure is increasing.
According to Owens Thomsen, airlines have to pay more for airport charges and air traffic control services, for example. But higher prices are also being dictated by suppliers such as engine and aircraft manufacturers, some of whom are exploiting their monopoly position.
At the same time, growing competition is putting pressure on airlines from below: every passenger can compare prices at any time and on any route, which makes price increases difficult, according to the IATA expert.
New passenger record expected
Despite rising prices, IATA still expects a record number of passengers in the coming year: in 2025, more than five billion people are expected to fly worldwide for the first time - 5.2 billion to be precise. That would be 6.7 percent more than this year.
Meanwhile, the association is forecasting a net profit of 31.5 billion dollars for this year. That is almost 15 percent more than in 2023. According to IATA estimates, profits are likely to rise to 36.6 billion dollars in 2025.
This year, airlines have clearly earned less money per passenger: the average net profit per passenger is 6.4 dollars after 7.9 dollars in 2023. Next year, however, the profit per passenger is expected to rise again to 7 dollars.
Around 340 airlines from more than 120 countries are organized in IATA, including Lufthansa and Swiss. They transport around 80 percent of global air traffic, passengers and air freight.
