Amid the ongoing post-COVID recovery in the aviation market, travellers in Europe benefit from favourable airfares compared to the inflation rate, according to the latest data released by the International Air Transport Association (IATA).
The most recent traffic figures reveal that European carriers are currently only 3.6 per cent below the peak recorded in 2019, SchengenVisaInfo.com reports.
In the face of an inflationary environment, Europeans persist in their travel endeavours.
As of June, average airfares in Europe increased by around 16 per cent compared to pre-pandemic levels. Nevertheless, the upturn falls short of the average Consumer Price Index for the EU, which, in June, stood at 20 per cent over pre-pandemic levels.
Willie Walsh, IATA’s Director General, mentioned that European air travel is strongly recovering and is projected to surpass the 2019 benchmark by the year 2024.
The competitiveness of Europe’s air transport market is holding air fare inflation at 16 per cent –four percentage points below the rises that we have seen in the broad consumer price index.
Walsh noted that the achievement of maintaining stable airfares in the face of fluctuating jet fuel prices and rising workforce salaries is significant. He contrasted this accomplishment with the ongoing trend of escalating charges imposed by infrastructure suppliers.
In a recent development, the UK Civil Aviation Authority (CAA) granted approval for a substantial 56 per cent hike in charges for London Heathrow and a 26 per cent increase for NATS, the United Kingdom’s air navigation services provider, in spite of reported service failures over the course of this summer.
Despite recent service failures, Amsterdam’s Schiphol Airport in the Netherlands has secured a 37 per cent fee increase.
Regulators play a significant influence in fostering a conducive environment for the success of airline competition.
European regulators implement a light-touch consumer regulation, empowering airlines to offer significant choice through unbundling travel packages while the European slot regulation maintains schedules, aiding new entrant accessibility.
Regulators must recognise areas for improvement in promoting competitive conditions. Key focus areas include implementing stronger regulations for monopoly infrastructure providers to reduce charges and advocating for EU261 consumer protection regulation reforms.
The recovery of Europe’s air transport market is bringing with it even more competitive market conditions.
Walsh emphasised the significance of the emergence of 20 new airlines in Europe last year, stating that a more competitive air transport market will enhance Europe’s overall competitiveness in business.
The IATA released the data during the Wings of Change Europe (WOCE) event in Amsterdam, where industry leaders, regulators, and experts convened to discuss critical issues in air transport.