BLUFThis article from the Conversation expresses the view that because of Covid, airfares will rise—probably by a lot.
Cheap air travel was possible pre-COVID-19 due to the business model of thin profit margins. However, the subsequent unprecedented disruption in aviation may end the era of affordable air travel because:
- Surviving airlines need to repair their debt-laden balance sheets.
- Airlines need to future-proof their operations.
- No guarantee of more government support for the aviation industry.
- Airlines have two years of massive losses to make up.
- Airlines have the extra cost of COVID-related regulations to absorb.
Recent Runway Posts related to this topic:
References from the Web :
- MAR 2021 CNBC Say goodbye to $30 plane tickets. The era of dirt-cheap flights is ending
- DEC 2021 Vatanbir. Why The Era Of Cheap Airline Tickets Could End
Source Information: The Conversation
- Article Source: https://theconversation.com/au
- Media Check : The Conversation – Media Bias/Fact Check (mediabiasfactcheck.com )
- LEARNING OUTCOMES—RUNWAY | The Runway (airforce.gov.au)