Flight Price Surge: Tips for Cheaper Airfares

Even though the pandemic is behind us and travel seems to be back, flights remain expensive.

After years of travel restrictions due to pandemics, the majority of the world's population is now able to travel and are in a holiday mood.

"We're seeing a surge in trips to culture capitals, a new wave of interest in wellness retreats, and a spike in demand for outdoor destinations beyond just beaches and mountains," said Jon Gieselman.

According to Skyscanner's latest survey, 91% of UAE travellers plan to travel this summer. 48% of these holidaymakers have not yet booked their trip.

Some of these travellers may be in for an unpleasant surprise as the cost of airfares continues to rise over the summer

"Airfares are higher than ever, planes are full," said John Bevan, chief executive at dnata Travel Group.

"The price of air travel continues to prove the most prominent challenge, as airlines grow flight capacity to ensure the volume required meets demand."

The global travel demand is the main factor driving the increase in flight prices.

Etihad Airways spokesperson told The National that "Since Covid there has been an consistently high demand for traveling, and we see this across the entire network, not only on certain routes."

"The demand is likely to be a factor of people having realised they missed out on travel during the pandemic and making up for it now. While family and friends quickly realised the importance of seeing each other face to face, it's also clear that businesses now have a renewed appreciation for the value of gathering at a trade show or an in-person meeting with a client,"mentioned UAE's national airline representative.

As long as demand is high, ticket prices will also remain high.

The National reported that "Airfare prices are complex and many factors determine the cost, from the itinerary to flexibility of the ticket to cabin class. However, the main determining factor is demand," Ayoub el Mamoun's Travel Expert at Skyscanner.

There is a shortage of pilots and planes

Even if the travel demand slows down, other frictions are likely to keep airfares at high levels. These include thin airline schedules and planes not yet ready for flight, as well as a shortage of pilots.

"Higher prices are partly due to supply constraints - not all the airlines have brought back all their fleet yet," Ross Veitch, chief executive and co-founder of Wego, told The National.

"It's not a quick fix - if you park a plane in the desert for 18 months, it takes a lot of effort to get it ready to fly again. And then there are crew issues. Pilots certified to fly an Airbus jet are now being asked to fly a Boeing 787, which means they've got to get in the simulator again, and there are only so many simulators - so changing all of that takes time."

According to RateGain, a travel technology company, many airlines in the Middle East have already returned to their pre-pandemic levels of capacity, including Emirates which operates at 85 percent.

This doesn't automatically mean that airfares will drop. Flight prices will continue to rise as long as other regions are still operating at a lower capacity than before the pandemic.

"I'm hopeful that by summer, most airlines that fly in and out of the Mena region, will be at - or almost at - 100 per cent back to where they were pre-Covid. But the Asia Pacific areas are still way behind and because it's a global network, that impacts prices," said Veitch.

"If someone wants to fly from somewhere in Asia to somewhere in Europe, they're transiting in the Middle East, and missing capacity has an impact. If they can't find flights with the Asian carrier they might normally fly with, then they're moving over to another airline - someone like Emirates or another regional airline - and that forces up demand for those tickets."

Can flight prices ever be returned to pre-Covid levels?

"I think summer prices might ease a little bit relative to where they were last year, but I'm not sure they're ever coming back to where they were pre-Covid," mentioned Veitch.

As oil prices rise, so do flight costs.

"Airfares are still very strong as there is a huge increase in fuel prices. They are at their peak," flydubai chief executive Ghaith Al Ghaith explained during the Arabian Travel Market 2023.

He said he expects fares to be high throughout the summer.

However, there are some factors that may ease the situation. Average airfares may begin to decrease as budget airlines increase capacity and new airlines enter the market.

"Low-cost airlines, the likes of Wizz Air, will have an impact," mentioned Veitch.

"And Riyadh Air - it's going to take them a while to get flying, but it'll be another large network carrier operating out of the region, which will be good for consumers."

Wizz Air Abu Dhabi has expanded its network since the pandemic and now offers budget flights from the UAE capital to over 20 destinations.

Flydubai's network has grown to include more than 100 destinations at lower prices, surpassing the pre-pandemic level. New budget airlines, such as Iceland's Play and Norse Atlantic Airways, could have a global impact on flight prices.

Boeing announced in April of this year that it would be increasing the delivery rate for new aircraft. This was welcomed news by the industry. Airbus, a rival company, said earlier this month that the supply chain crisis for aircraft could continue well into next.

While it is not good news for the world economy, the possibility of a possible recession could have an impact on airfares. Travellers may be less willing to book flights if they are faced with a potential recession and a rise in global living costs.

"As capacity increases and demand softens, prices will adapt accordingly," said Etihad's spokesperson.

Cheap Flights: Top Tips

There are still plenty of good airfare deals to be found, despite the current economic climate.

When booking flights, travellers need to be smart. Understanding how airlines work can help them find cheaper fares.

"One common practice of airlines is to have fare classes, and as one fare class fills up, they open the next one for purchase. This is one of the reasons why ticket prices fluctuate, and why booking at certain times - for example, at the last minute - may be more expensive as there is usually less supply to meet demand," mentions Skyscanner's El Mamoun.

"At the same time, last-minute deals can also be found depending on the route and itinerary as airlines launch new routes or look to fill the last seats before departure."

Knowing when to book and being flexible in your travel plans can help you find cheaper airfares.

Veitch says timing is key.

"Get organised and book ahead of time - the rule of thumb is that the further ahead you book the better. If you are booking travel that's six months or more out, book something that's flexible so that if plans change you have options."

Etihad Airways offers the same advice. "We recommend booking early to get the best prices and the best deals."

Reduced fares are also available for flying on less popular days. El Mamoum said that flexible travellers who can fly less-popular days can save up 35 percent on their flight costs in July and August.

What are the best places to fly for cheap this summer?

Saving dirhams can be achieved by going against the flow.

"It's good to be countercyclical. If you've got the flexibility to go on holiday outside of school holidays, do it. If you've got a family that's a bit harder, but if you can, then take advantage of it," mentioned Veitch.

A good tip is to be creative when deciding on where to travel. "If you want to go to the same iconic destinations as everybody else at the same time, you'll pay a premium for the price," also mentioned the chief executive.

Exclusive travel data shared by Skyscanner with The National shows that the average flight fares from the UAE to several destinations are lower now than before pandemic.

Greece is one of them, with fares 24 percent lower this year than they were last year, and the Maldives, where prices are 56 percent less than before the Covid era, probably due to Wizz Air's introduction of low-cost flights to the Indian Ocean hotspot.

Ten destinations where 2023 fares will be lower than 2019 fares:

• Austria (29 per cent less)
• Azerbaijan (20 per cent less)
• Bosnia and Herzegovina (51% less)
• Brazil (7 per cent less)
• Cyprus (35 per cent less)
• Georgia (41 per cent less)
• Greece (24 per cent less)
• Iceland (12 percent less)
• Kuwait (80 per cent less)
• Maldives (56 per cent less)

Source: thenationalnews.com