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Domestic flights are getting cheaper

In May, airlines around the world began to reduce tariffs for domestic air travel.

According to IATA estimates, on average, domestic airline fares decreased by 23%. The Russian aviation industry is in the same trend, the demand is increasing due to the low cost of tickets.

Compared to April, when air travel was almost completely stopped due to the COVID-19 pandemic, domestic passenger traffic in the world grew by 30% in May.

By the first week of April, governments in 75% of the markets tracked by IATA had completely banned entry, while 19% had imposed travel restrictions or mandatory quarantine requirements.

The initial increase in the number of flights was focused on domestic markets. Data from late May shows that flight levels in the Republic of Korea, China and Vietnam have risen to a point that is 22-28% lower than a year ago.

Search queries for air travel on Google were up 25 percent by the end of May from the April low, though that's an increase from a low base and ticket demand is 60 percent lower than at the start of the year.

The surge in demand for transportation is largely due to lower fares that financially depleted airlines now cannot afford, in addition to the new costs of ensuring epidemic flight safety and other costs.

“Airlines need money because of the crisis, and they are looking to stimulate passenger demand by offering low fares,” said IATA chief economist Brian Pearce.

Russian airlines in the context of anticoronavirus restrictions stimulate demand with promotional tariffs.

Restoration of passenger traffic on domestic routes is hampered by uncertainty about the lifting of restrictions in the Russian regions, as well as the postponement of the start of the season in the Russian south <...> the average load on domestic flights was only 33-36%. Airlines fares for May and June are much lower than in the same period last year, says ATOR Vice President D. Gorin.

Experts see a tendency to increase the volume of traffic on domestic flights. In April, the volume of sales of air tickets amounted to about 10-12% of the volumes of last April, in May the same figure increased to 17%.

Source: atorus

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