Markets 
The summer holidays are just around the corner, yet for holiday makers, headlines surrounding air travel haven’t been too encouraging, to say the least.
Concerns over dwindling jet fuel supplies in Europe and surging average prices per barrel, up more than 80% compared to last year, have placed the costs of going abroad firmly on the radar. However, despite mounting industry pressures, some airlines may have started lowering fares to lure travellers back.
Analysis by the Financial Times, based on the cheapest fares listed on Google Flights, found that ticket prices to popular southern European destinations have declined since the outbreak of the Middle East conflict.
Prices dropped by “10% or more for 15 routes”, including from Heathrow to Nice, Manchester to Palma and Gatwick to Barcelona, the FT said. They also fell by as much as 44% for flights between Milan and Madrid, with the London-based newspaper adding that in instances where prices rose, the changes were “less significant”.
Sensing growing concern, British Airways published its “holiday promise”, assuring travellers that the price they pay will remain fixed upon booking (even if fares increase later).
BA also promises that all its holiday packages are ATOL protected. There is also the option to pay a deposit to secure a trip and pay the remainder later without facing later increases once booked.
Recent events don’t seem to have shaken Europeans’ resolve to make the most of the holiday season either. If anything, appetites to fly are stronger than ever.
The latest research from the European Travel Commission (ECT) on Monitoring Sentiment for Intra-European Travel found record levels of interest, with 82% of Europeans planning to travel this season.
However, for those seeking greener holiday pastures further afield, Teneo, a global advisory firm, found a sharp increase in airfares, especially on Europe to Asia routes.
The research found price hikes on even the lowest average economy tickets costing passengers 24% more than last year – marking the highest average rise in the past five years.
Travel plans up in the air
Last week, the European Commission weighed in on airlines passing on fees to passengers when fuel prices surge.
“Anyone selling air tickets must always display the final price the passenger will pay,” a Commission spokesperson said. “This includes all unavoidable and foreseeable taxes, fees, and charges. Adding a fuel surcharge to a ticket after it has been bought cannot be justified.”
Despite the easing of fares, summer travel isn’t completely out of the woods yet with the continent’s routes facing considerable uncertainty.
This month alone, around 13,000 scheduled flights have been axed by global carriers.
In Europe, Lufthansa Group has cancelled 20,000 flights in a bid to curb jet fuel costs. Other carriers, such as Turkish Airlines, British Airways and KLM have also had to streamline upcoming flight paths.
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