Air tickets for travellers to and from Cyprus are significantly more expensive this year. Shortages of jet fuel due to the crisis in the Strait of Hormuz, the reduction of routes and, therefore, seats for some destinations as well as the increased demand due to the summer holidays, have greatly raised prices.
As "F" finds, looking for destinations in Greece for the summer months, in some cases there is even an increase of 50% compared to last year, which corresponds to €100 to €120. The Deputy Minister of Tourism made a similar finding, speaking of an increase of an average of €88 for international destinations, with the International Air Transport Association announcing that an increase in ticket prices is inevitable and that the cost will be borne by passengers.
For his part, the president of the Cyprus Travel and Travel Agents Association, Haris Papacharalambous, although he admits that "there is clearly an increase in prices", nevertheless, he also suggests some practices to make summer trips cheaper.
"It is a matter of supply and demand. Of course, the cost of fuel has affected all destinations, it does not only concern Cyprus," he pointed out. Prices, he said, are also affected by the dates someone is looking for to make their reservation. Athens in particular, he said, is a special destination for Cyprus, as it is often a transfer point for the longest routes. "This affects the demand and supply of Athens."
In recent months, at the European level, he found that the increase amounts to 2% to 5%. At this time, he noted, the increases for Cyprus are small and for this reason, Mr. Papacharalambous estimates, the demand which is close to last year's levels, where it was a record year, was not affected.
However, it seems that practices within the EU implemented by the US, such as flight consolidations, are not being followed. "In the European Union there are very strict laws that do not leave airlines the room for shortcuts. As for last-minute cancellations, the reasons are usually technical and not occupancy," he underlined.
Another factor that may raise the prices of air tickets to Cyprus is the reduction of routes. "Due to the low demand that followed the war in the Middle East, some airlines have diversified their flight schedules. Something airlines are entitled to do. For example, where a company used to fly five times a day, it can now operate three times. There are several European destinations that have been affected and this is where the reduction in seats comes from."
Mr. Papacharalambous urges people who want to travel in the summer to book their tickets immediately. "The sooner they do it, the better. It's the only thing I can urge people to do. Because, as the days go by and the supply decreases in relation to demand, the higher the prices will be," he underlined.
He also said that another solution is for people to book tickets to fly in the middle of the week and not at the weekend. In addition, he said, it might be beneficial to fly in another season, instead of in the heart of summer.
For example, he said, "at the moment you find a round trip from Larnaca to Athens for September for €220. For this particular time of year it is a historically high price. If I change it and differentiate it a little and take out the Friday I had chosen and put on weekdays, then it comes out a round trip of €90," he said.
As an Association, he said, they believe that the key is incoming winter tourism, if Cyprus succeeds in this, it will be able to strengthen the country's connectivity with airports and will offer a variety of flights.
Up to €88 increase for non-EU, says the Deputy Minister of Tourism
The Deputy Minister, Costas Koumis, referred to the problems caused by the war in the Middle East to air transport and tourism for Cyprus.
The pressure, as he said speaking to RIK, can be seen on the airlines. "A few weeks ago, a very large company announced that it was reducing frequencies by 100 routes. Another well-known company grounded an entire subsidiary, with 27 aircraft. Another well-known low-cost company has decided to close its base in Berlin. All this affects each destination separately, depending on the interconnection", he said and added that despite the difficulties "Cyprus had achieved a very strong air connection in recent years".
Mr. Koumis pointed out that air tickets have become very expensive. "The latest statistics show that a plane ticket for a trip outside Europe has risen by €88 on average and within Europe by €29. We, for our part, as the Deputy Ministry of Tourism, are in constant communication with the giants of the industry, in order to maintain the cooperation between us at a very high level and we hope for good results", he said and underlined that "we are affected by the war and what is happening with jet fuels - aircraft fuel".
International Air Transport Union: Increased fuel costs will be passed on to passengers
The International Air Transport Association (IATA) considers the increase in air ticket prices in Europe inevitable, due to the skyrocketing cost of aviation fuel caused by the crisis in the Strait of Hormuz.
IATA Director-General Willie Walsh told the BBC that although some airlines have recently cut prices in Europe due to lower demand, airlines cannot absorb the increased operating costs indefinitely.
"There is no way for airlines to continue to absorb the extra costs they face," he said. As he explained, some offers and discounts may temporarily continue to stimulate demand, however, "over time it is inevitable that the high price of oil will be reflected in higher ticket prices".
The head of IATA also made a worrying prediction that even if the Strait of Hormuz were to be opened immediately, the effects on fuel prices would not disappear quickly. "Whichever way you look at it, this problem will continue for several months and may even extend into next year," he underlined.
Fuel Observatory by the Commission
The European Commission is also trying to take measures, which announced a few days ago that it will create a Fuel Observatory, which will monitor the production, imports, exports and levels of fuel stocks for transport in the EU.
In this way, as he announced, it will be possible to quickly identify possible shortages and take targeted measures to maintain the balanced distribution of fuel in all regions and airports.
To mitigate the impact of potential fuel shortages on the EU aviation sector, the Commission will provide clarity on the existing flexibilities within the EU aviation framework to address the consequences of flight cancellations and other disruptions. The Commission is also committed to further promoting the uptake of EU-produced sustainable aviation fuels (SAFs) and sustainable marine fuels (SMFs).
