Flight prices rise to pre-recession level

Flight prices rise to pre-recession level

Cheapflights.co.uk has noted a 23.1% increase in UK air fares year-on-year as the industry recovers from the economic crisis. The website has suggested that taxes, smaller capacity and increased fuel prices have contributed towards the rise, which has also led to higher passenger load factors. In addition, economy seat sales are 3% above pre-recession levels, although premium traffic sales are still down on the peak. “There has been a significant 34% increase in searches on our UK and North American sites when comparing their combined traffic for the 12 months to August 2008 to the traffic in the recent recovery period from August 2009 to date,” explained Cheapflights CEO Chris Cuddy. “This reflects the 11% growth in global passenger demand recently predicted by IATA for 2010.” He predicted that recovery during 2011 would be slower and could possibly result in lower load factors and yields.

Gary Marshall
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Gary Marshall
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