Emirates President Tim Clark said Australian travelers could expect falling ticket prices later this year as inflation eases and airlines increase capacity, but it remains unclear whether they will return to pre-pandemic levels amid rising demand for flights will.
The Dubai-based airline said it would increase its flights to Sydney and Melbourne, and resumed flights between Christchurch, New Zealand and Sydney on Monday.
“As cost pressures ease, and we are already seeing signs of that, inflation will start to fall, interest rates will come down at the end of the year, and as supply chains get into good shape, prices will come down, and then logically prices should go down.” , he said. “Whether they fall into pre-pandemic state I don’t know, but I see adjustments coming.”
Though ticket prices are expected to fall as inflation falls and the industry comes to “balance,” Clark said demand for travel at current prices, which are above historical levels, remains strong.
“The demand for travel [after the pandemic] was very strong, especially outside of places like Australia, but the interesting thing is they [passengers] willing to pay and fill not just higher planes, but at the new price levels,” he said.
“So this is interesting for us because it makes you wonder if we did the right thing in the past or how all of this would affect the future pricing of our products.”
“I want a fair margin for the business [and] doing the right thing by consumers, giving them a fair price that allows all these things to find their place.”
Clark said opening up the Chinese market will accelerate the airline industry’s recovery from the pandemic.
“If the Chinese market is allowed to go back to the levels it could, then you have a couple 100 million people that will be out and about, many of whom will come here [Australia]and then we go to Europe, America,” he said.
https://www.smh.com.au/business/companies/prices-should-come-down-emirates-boss-eyes-lower-ticket-prices-as-airlines-boost-capacity-20230127-p5cg0y.html?ref=rss&utm_medium=rss&utm_source=rss_business Emirates boss sees lower ticket prices as airlines increase capacity