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IATA: Airline Passengers to Face Potential Price Hikes

The International Air Transport Association (IATA) has announced at its annual meeting in Dubai on Monday that airline passengers can expect to pay more for their next flight.

This increase comes as airlines grapple with rising costs across the board. Global inflation, a lingering issue since the pandemic, continues to squeeze airline profits.

Additionally, jet fuel prices,already a significant expense for airlines, remain high.The push for sustainable aviation fuel (SAF) is creating competition for this limited resource, further driving up costs.

The director-general of the International Air Transport Association,Willie Walsh, said “the airlines will continue to do everything they can to keep costs in control as much as possible for the benefit of consumers.”

“But I think it’s unrealistic to expect that airlines can continue to absorb all of the costs. … It’s not something we like to do, but it’s something we have to do,”he added.

The industry is also faced with backlog in aircraft production due to the pandemic. Airlines are forced to keep older, less fuel-efficient planes in service, and there aren’t enough new aircraft to increase supply and lower overall prices.

Boluwatife Enome

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