Flight prices go sky high

It turns out holding off on booking that holiday wasn’t such a good idea after all… 

Tailwinds ahead 

There’s just no let-up for airline companies. After the challenges of the pandemic saw off multiple airlines, firms have since been battling rising inflation prices, pushing their costs higher. And just as they were hoping things would start to calm down with interest rate rises, war broke out in Ukraine.  

Not an immediate problem? Think again. The world gets a vast amount of its oil supply from Russia, and with sanctions creating a shortage in the west the price of an oil barrel shot up dramatically, and has been fluctuating well above $100 a barrel for weeks.  

Turbulence ahead 

And there’s worse to come. Ticket prices to some of the world’s hottest destinations were already 40% more expensive this January than last year – and some analysts think prices will be up 76% by the summer. That’s a 10-year high.  

Some providers are cutting routes to try and adjust their prices. So-called ‘ghost flights’ – journeys severely under-booked with passengers – are continuing to run routes every day due to contractual obligations. So while oil prices are going through the roof, lots of airlines are being forced to run flights and buy more oil. Bad for business, and the planet.   

So, if you can still afford to book a flight – hop on it now. But good luck flying business class.