Why a flight suddenly costs like a small trip – and what to do about it
I've been flying and driving for almost twenty years, and in that time the airline industry has changed beyond recognition. Programs with miles and points appeared, tickets “around the world” sunk into oblivion, major airlines merged, and with it low-cost airlines flourished.
It would seem that competition should push prices down, but in practice it turned out differently. Let’s figure out why your ticket can cost so much, and how to live with it when you plan to travel on your own.
What happened to the airlines?
Over the past decades, the industry has significantly consolidated. The United States has three major alliances: American, Delta and United. In addition, the recent bankruptcy of Spirit and the merger of Alaska and Hawaiian further reduced the choice on some routes. Canada is dominated by WestJet and Air Canada. In Europe, the key players are Air France-KLM, IAG (British Airways) and Lufthansa, although there is a rescue in the form of many low-cost carriers.
Fewer carriers, less incentive to dump. When one or two companies fly in a direction, the passenger simply has fewer alternatives and that pushes fares up.
Oil, fees and consequences of crises
The price of fuel has increased significantly: in 2017, kerosene cost about $ 1.37 per gallon, in 2024 - about $ 6.49 per gallon. These costs are inevitably passed on to passengers. Added to all this was the increase in taxes and fees (flying to London?) Do not be surprised that the bill is a significant part – fees and taxes.
After the crisis of 2008, demand fell, and airlines reduced the routes and frequency of flights - as a result, the aircraft began to fly fuller, which is economically more profitable for the carrier. This process accelerated during COVID: many aircraft were decommissioned and staff cut. When travel became massive again, airlines lacked the fleet and staff to return to pre-scheduling.
Lower supply amid high demand is another reason for expensive tickets. As Rick Seaney of Farecompare.com puts it: Before 2008, passengers were in a better position. Since the 2009 crisis, the scale of equity has swung towards airlines.”
How the ticket price is formed
Prices fluctuate under the influence of four main factors: competition, supply (supply), demand (demand) and oil price. All this affects the so-called “load factor” – the percentage of seats sold per flight. Airlines strive to fill the plane as much as possible and make a profit for this through fine-tuning prices.
Today, dynamic pricing and artificial intelligence are used to calculate the tariff. Remember how prices go up after a big event? It’s not always the marketer’s black will – it’s an algorithm that sees a surge in demand and automatically raises the price. More demand = higher tariffs.
What can be done by an independent traveler
Despite all these factors, the independent traveler has the tools:
- Flexibility. Change dates and times – a mid-week flight or night flight is often cheaper.
- Surveillance. Set up price alerts and compare aggregators.
- Points and loyalty programs. They still work – use the accumulated miles wisely.
- Low-costers. They cut costs, but consider baggage and extra charges.
- Alternative airports. Sometimes a little further is much cheaper.
Book in advance, but also monitor the “burning” offers.
And a small hint: when visiting major cities or popular routes, owning local nuances saves both time and money. A tour with a local guide will not only revitalize the place, but can also tell you which airports, stations or ways to get there will be more profitable - especially if you plan the route yourself and are looking for alternatives.
Briefly about the main thing: tickets have risen in price for more than one reason - it is the effect of market consolidation, the growth of fuel and tax costs, the consequences of economic shocks and smart pricing algorithms. But for an independent traveler, techniques are available that help you find more profitable options - you just need a little flexibility and patience.
Friends!
Allow yourself to travel in a popular and popular format - an individual tour with a private guide.
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