It is too early to talk about the full-fledged restoration of air traffic between Europe and Asia // Photo: shutterstock.com.
High prices will remain at least until the fall of this year. A price decrease is possible a few months after the end of the active phase of the conflict in the Middle East.
Colossal growth of prices for flights between Europe and Asia
The suspension of air services to the Gulf countries has caused tickets on the main routes connecting Europe with Asia to rise by an average of 70% compared to March last year. According to Alton Aviation Consultancy, the most notable increases are seen on flights from Hong Kong, China to London, UK. Prices for the most expensive tickets in this direction exceed $3.3 thousand, which is 560% more compared to February. A flight from Bangkok (Thailand) to Frankfurt am Main (Germany) is 505% more expensive than a month earlier – up to $2.8 thousand.
Since the conflict escalated on February 28, demand and prices on these routes have increased, despite attempts by European and Asian carriers to quickly increase capacity. A month later, airlines are still struggling to adapt to the situation in the industry, and rising fuel prices are only exacerbating the situation.
Flights transiting through the UAE and Qatar, the busiest hubs in the Middle East, have been hardest hit. According to the consulting company Roland Berger (Germany), Abu Dhabi, Doha and Dubai airports account for about a third of annual traffic between the regions.
The pressure on prices will continue in case the military conflict in the Persian Gulf is over – by October the average price is expected to be 30% higher compared to last year’s figure. According to experts of “Alton Aviation Consultancy”, it will take up to three months for the price reduction to affect the supply chain of aviation fuel. The more distant the flight, the longer the period of high prices will be.
Impact on ticket bookings
Experts are also seeing a decline in demand for long-haul travel due to uncertainty and price increases. According to UK-based analytics company Cirium, flight bookings from Europe to the US for the summer months are down 15% compared to last year, while passenger traffic in the opposite direction has fallen by 11%.
Reports of canceled, delayed flights or problems experienced by passengers are exacerbating the situation in ticket and tour bookings.
