to achieve it, “air ticket prices will remain high”, warns ADP

“Air ticket prices will remain high, in particular because it is absolutely necessary to reach zero level in 2050”, explains Thursday October 26 on France Inter Augustin de Romanet, president and CEO of Aéroports de Paris. 193 States of the International Civil Aviation Organization (ICAO) have set the ambitious goal of achieving carbon neutrality by 2050. “To do this, we need to buy new planes and have new fuels,” continues Augustin de Romanet.

Airline ticket prices have soared in recent years. The Civil Aviation Department indicated last June that travelers had to pay on average 30% more than three years ago, before the Covid-19 pandemic, to make the same plane journey. Several reasons are put forward: the increase in the cost of kerosene, investments in decarbonization, the cost of labor. Many companies have had to renegotiate their salary agreements with cabin crew and pilots upwards.

“An effect of ‘yield management'”

Augustin de Romanet puts forward another explanation: “The prices of plane tickets have increased significantly after Covid, undoubtedly under the effect of what we call ‘yield management’, a somewhat barbaric word to say that companies adapt the price to demand.. The CEO of Aéroports de Paris continues: after the pandemic, “the supply of planes was reduced since traffic had not yet completely resumed and there is very strong demand”. According to his “personal analysis”, airlines were able to “have these price increases accepted” to their customers with “ease” and thus, the prices “remained on a slightly higher plateau than they would have done spontaneously.”

The CEO of Aéroports de Paris indicates that air traffic is “almost” returned to its pre-Covid level. “At Orly, we are higher than in 2019. At Charles-de-Gaulle, a little less because we are missing the Chinese passengers.” He also wishes to emphasize that “traditional airlines, Lufthansa, British Airways, make no money or very little” unlike low cost airlines. “So, as far as we are concerned, we airports, which are obliged to invest, it is rather good news that the airlines are starting to be a little profitable again” since they “pay us royalties”.

The tax on large airports planned in the 2024 draft budget to finance the ecological transition will cost approximately “120 million euros per year” at Paris airports, estimates Augustin de Romanet. If this measure is adopted, this sum will be “partly passed on” on the price of plane tickets. “The impact on the plane ticket is around 1.5 euros per passenger on average”he specifies.