Airline industry group IATA said that leaving the middle seat vacant for social distancing between passengers on board would hurt airlines’ ability to recover from the Covid-19 pandemic and potentially cause a spike of up to 50% in airfares.
Malaysia Airlines Bhd said this was seen in Thailand after its government regulated empty seating between passengers and lead to raising domestic fares by over 50%.
“We will continue to drive dynamic pricing depending on capacity and demand. Promotions will surely be ascertained periodically as and when feasible. We expect customers to have more concern on safety and security.”
Air fares would likely increase by about 50% depending on routes and capacity demand.
Malindo Air said its fares would likely increase by about 50% if social distancing is enforced, depending on selected routes and capacity demand.
According to Malindo Air chief executive officer Captain Mushafiz Mustafa Bakri the new standard operating procedures (SOPs) for the airline industry might compress players’ margins by about 50%.
Malindo Air chief executive officer Captain Mushafiz Mustafa Bakri said the new standard operating procedures (SOPs) for the airline industry might compress players’ margins by about 50 per cent. Competition between airlines would be more intense as demand gradually increases but with less seats available for each flight.
“This will affect our fares as we need to cover revenue losses and higher opex due to the sanitation process and social distancing on aircraft to ensure the safety of both passengers and crew,” he said.
IATA said with fewer seats to sell, unit costs would rise sharply
Aviation experts said social distancing onboard aircraft could speed up the closures of multiple international airlines which are reeling from the effect of the Covid-19 pandemic. Imposing social distancing would fundamentally shift the economics of aviation by slashing the maximum load factor to 62% – well below average industry break even load factor of 77%.
“Airlines are fighting for survival. Eliminating the middle seats will raise costs. If that can be offset with higher fares, the era of affordable travel will come to an end.”
The aviation industry is working with governments to resume flying
“The aviation industry is working with governments to re-start flying when this can be done safely. We must arrive at a solution that gives passengers the confidence to fly and keeps the cost of flying affordable.”
According to IATA, only a few airlines can break even if social distancing on aircraft is imposed. Aviation experts agreed that air fares would spike once people start travelling again as airlines could not sustain the additional costs of Covid-19 precautions at the fares they were charging in 2019.
To advertise your business, product or brand here please contact Samson 012-5220789 / email us firstname.lastname@example.org