Why have flights got so expensive?

ncmc

Just got to thinking after reading another thread on here about the price of flights to Orlando next year. Basically, flights that were €700pp this year are €1000 plus for next year (the thread was about Air Lingus but they are all at it). Now I know Air Lingus hedged and bought oil when it was more expensive, but surely oil alone can't account for an increase of €300-350 pp?

Is it that flight numbers are down so much, they are gouging the customers they do get for as much money as possible? Maybe if the flights weren't so bloody expensive, they might fill more seats!

It has got to the stage where holidays to the States are out of reach for an awful lot of people now.

what2do

Not sure if you've missed all the reports, news etc but fuel costs have increased a tad in recent times!

ncmc

what2do wrote: »

Not sure if you've missed all the reports, news etc but fuel costs have increased a tad in recent times!

Not sure if you read my post, but I said that I realised that oil costs have increased, but charging an extra €300-350 pp on a flight to Orlando seems excessive.

By that reasoning, should we expect to see the prices come down dramatically now that oil is less than $100 per barrel agian?

tomcollins97

ncmc wrote: »

Not sure if you read my post, but I said that I realised that oil costs have increased, but charging an extra €300-350 pp on a flight to Orlando seems excessive.

By that reasoning, should we expect to see the prices come down dramatically now that oil is less than $100 per barrel agian?

They don't buy the fuel the day you fly! It could have been bought months ago at a higher price, the airline may have hedged badly of have a poor futures position. the price you pay will not reflected current market conditions. That would be like saying that if the price of wheat dropped today by 50% the price of bread today would drop - wrong, the bread was baked at a higher cost & the price will take time to come down

ncmc

tomcollins97 wrote: »

They don't buy the fuel the day you fly! It could have been bought months ago at a higher price, the airline may have hedged badly of have a poor futures position. the price you pay will not reflected current market conditions. That would be like saying that if the price of wheat dropped today by 50% the price of bread today would drop - wrong, the bread was baked at a higher cost & the price will take time to come down

Did you guys read my OP? I know Air Lingus hedged at a higher price (I mentioned that in my post), I know a drop in oil prices won't show for months, my argument is, I find it hard to believe they will drop the prices by the same amount they put them up. I don't believe we can blame oil alone for an increase in 50% or more in prices. It seems the airlines are taking advantage of whatever customers they have left and are charging astronomical prices.

Surely this practise will backfire as more and more people decline to travel.

robinph

Flying is still cheap. How many people were able to reguarly consider flying abroard for holidays several time a year 15 or 20 years ago? OK, so the price has fluctuated a bit in the last year, but it is still very much affordable for very many people to fly away on holidays reguarly. Just people got too used to prices going ever downwards in the headline price and with the likes of EasyRyanJet it became cheaper to take the plane than the bus.

You'll still be taking more holidays abroard by air than your parents could ever afford to do, whatever happens to the price.

ncmc

robinph wrote: »

Flying is still cheap. How many people were able to reguarly consider flying abroard for holidays several time a year 15 or 20 years ago? OK, so the price has fluctuated a bit in the last year, but it is still very much affordable for very many people to fly away on holidays reguarly. Just people got too used to prices going ever downwards in the headline price and with the likes of EasyRyanJet it became cheaper to take the plane than the bus.

You'll still be taking more holidays abroard by air than your parents could ever afford to do, whatever happens to the price.

That's a fair point Robinph, however much we give out about Ryanair and the likes, they have taken amazing strides towards making flying affordable for the masses.

Maybe we have got used to low prices during the good times and it is just a bit of a shock to see the prices so high.

In 2005, my hubby and I went to Orlando for two weeks and paid €2000 for flights, accomodation and car hire. Now we would be looking at that for flights alone next year!

Savman

What a bollocks thread. Why didn't u just call it "why are are lingus flights to orlando so expensive" because the answer to that is surprisingly simple, zero competition on that route.

Flights to UK and Europe are cheaper than ever, so it's inaccurate to generalize and dumb to compare all flights to those to insanely popular tourist destinations like Orlando.

ncmc

Savman wrote: »

What a bollocks thread. Why didn't u just call it "why are are lingus flights to orlando so expensive" because the answer to that is surprisingly simple, zero competition on that route.

Flights to UK and Europe are cheaper than ever, so it's inaccurate to generalize and dumb to compare all flights to those to insanely popular tourist destinations like Orlando.

What a charming and inciteful reply Savman. I am not just talking about flights to Orlando, I was merely using that as an example. I was refering to most flights to the states and other long haul destinations.

Also, I was not just refering to the Dublin-Orlando route, where Air Lingus are the only ones that fly direct, (not the only ones that fly the route) but also Shannon-Orlando which is served by Continental, Delta, American Airlines, US Airways and others I'm sure.

Like I said, I'm using Orlando as an example, because that is the destination that I am most interested in at the moment, but huge price increases can be seen on most long haul routes.

killbillvol2

ncmc wrote: »

Like I said, I'm using Orlando as an example, because that is the destination that I am most interested in at the moment, but huge price increases can be seen on most long haul routes.

Wrong.

Flights to Asia aren't significantly more expensive than they were 5 years ago. With one major exception - Thailand. You can also get good valiue
to the States if you avoid the major tourist destinations.

And that's the explanation. Popular destinations will be more expensive. The fact that Irish people are like sheep and will travel in their droves to the same places every year pushes prices up.

Also, the way the dollar is strengthening at the moment will probably reduce demand for flights to the US. The slowing economy will cut down on the shopping trips so I wouldn't be surprised if prices began to drop again next year. (Unless the number of flights is cut back).

Fighting Irish

wait hold the boat, a company is charging a price that people will pay?

jonny68

Flights to Dubai via London and Doha at Xmas are pretty much rhe same price as rhey were last year as i just checked.

CSC

Have just went on to book flights to Liverpool for a weekend. Shocked that they come to a total of over €200. I was over for a weekend recently and the total came to just over €60.

An Citeog

CSC wrote: »

Have just went on to book flights to Liverpool for a weekend. Shocked that they come to a total of over €200. I was over for a weekend recently and the total came to just over €60.

Have Liverpool got a home game that weekend? If so, there's your answer.

CSC

I didn't think of that. You've probably hit the nail on the head.