Due to significant losses incurred by several airlines during the pandemic, they grounded a large number of their planes as demand for travel dwindled. However, with the resurgence of travel, there is now a shortage of planes, as it takes a considerable amount of time to prepare the aircraft for service after being parked for an extended period, with the largest planes taking up to 100 working hours to be ready.In addition, another reason for the high airfare is that consumers are willing to pay more due to the lack of travel opportunities during the pandemic. There are people who were unable to travel for up to three years, and as a result, they are willing to spend more on their itineraries to make up for lost time. According to a survey by Booking.com, many travellers are willing to be “more indulgent” in their travel plans. Marcos Guerrero, senior director of flights at the online travel company, stated that even if some trips may be more expensive than before, many people still see value in spending on travel.According to the CEO of Ryanair, Michael OLeary, airline ticket prices are likely to remain high for a few years, which is not good news for consumers.Lack of StaffDue to the losses incurred by airlines during the pandemic, which amounted to nearly $200 billion, and the subsequent layoffs of tens of millions of aviation employees, the industry is finding it difficult to hire sufficient staff, now that the recovery of travel is well underway. Many well-trained former workers have chosen to switch careers entirely to take up more stable jobs, adding to the shortage of skilled labour in the industry.High Oil PricesAlthough fuel prices have decreased over the past year, crude oil is still more than 50% expensive than in January 2019, which poses a challenge for airlines. Some airlines, particularly low-cost ones, dont protect themselves against fuel price increases, making them vulnerable to spikes triggered by events like Russias incursion into Ukraine. While airlines account for just over 2% of the worlds carbon emissions, they are far behind other industries in committing to a cleaner future. One reason for this is that the only realistic option currently available, sustainable aviation fuel, is up to five times more costly than regular jet fuel.Shortage of AircraftDuring the pandemic, around two-thirds of the worlds commercial fleet – about 16,000 aircraft – were grounded, and getting them back in the air is a daunting task, which involves checking every component to ensure safety. Many were stored in desert locations in the US and Australia to minimise wear and tear, but they still require repairs for issues such as damaged interiors and engines.Furthermore, there is a shortage of labour, causing delays in production at aircraft manufacturers. Additionally, the sanctions related to Russia have made it more challenging for Airbus SE, Boeing Co., and their suppliers to secure raw materials such as titanium, resulting in higher prices for parts.The Problem With PointsDuring the pandemic, consumers earned millions of airline points and miles by using credit cards, but it is challenging to redeem them due to the limited availability of seats on flights. Airlines usually reserve only a few seats for point redemption, and this fraction has reduced even further. Additionally, airlines have been reducing the value of these points.
