Airline Ticket Prices to Rise: What’s the Reason?

Willie Walsh, Director General of the International Air Transport Association (IATA), confirmed that the rising costs of oil will be passed on to consumers. Oil prices have surged as economies recover from the COVID pandemic and due to the war in Ukraine. Walsh told the BBC that travelers should be prepared for higher flight costs, pointing out that "air travel will undoubtedly be more expensive for consumers, and the rise in oil prices will be reflected in higher ticket fares." Oil prices were already increasing with the resurgence of demand in economies that are starting to recover from the pandemic. Walsh stated that fuel prices have reached record levels, and emphasized that "oil is the single largest component in an airline's cost base, and it is inevitable that elevated oil prices will eventually be passed on to consumers in the form of higher ticket prices."