Are Airlines Reducing Air Travel Demand by Hiking Prices?

The air travel demand has visibly hit a glass ceiling as most airlines keep their ticket prices hiked up throughout the year. Airports Council International (ACI) recently conducted a study to determine the common reasons behind these hiked-up prices around the world and the impact it may have on the global aviation market. ACI Asia-Pacific director Stefano Baronci has revealed that most airlines are keeping their ticket prices extremely high to overcome the losses caused during the pandemic and the lack of competition in the market, especially with its economic after-effects, as per Simple Flying.

He said, “Airlines should exercise fair pricing that supports recovery and safeguards consumers’ interests. A supply-demand imbalance should not be exploited by airlines at the expense of customers by restricting the capacity.” He further urged all the airlines to be extremely cautious in deciding their prices, not just to uphold the air travel demand around the world but also to avoid an irreparable loss to the global aviation market. Airlines and airports have invested heavily to modernise their daily operations with technology, which has increased the demand for air travel, but keeping up the airport charges and travel fees may result in a major economic blunder.