Yahoo Finance Air fares climb at their fastest rate since records began
Air fares are rising at their fastest rate since records began as carriers capitalise on pent-up demand following coronavirus lockdowns.
Ticket prices rose by 44.1pc last year, according to the Office for National Statistics (ONS), the largest rise since records began being compiled in 1989.
The increases come as the boss of Ryanair, the biggest airline in Europe, said that fares would continue rising in 2023 by “high single digits” percentages.
Michael O’Leary said that the budget carrier had enjoyed its best weekend of bookings, with more than two million people buying tickets, last weekend despite fares starting at £29.99 rather than £9.99 as they have in the past.
“I’m not sure I’ve seen two years of increased airfares over my years,” he said.
“Much of that though is [because] there is less capacity [fewer seats] than there was pre-Covid.”
He added that Ryanair was seeing “no sign” of the fallout of recession or an economic slowdown.
“Despite the fact that we are clearly in a recession, there's energy price inflation, consumer price inflation, yet people are still spending, restaurants, clubs, hotels, cinema. Everything is showing an increased kind of spending,” Mr O’Leary said.
The price rise comes as WHSmith said the return of winter getaways gave it a boost as more travellers stopped off at airport stores, sending sales more than 40pc higher in the Christmas period.
WHSmith, which has more than 1,700 stores including 590 in UK airports, hospitals and train stations across the UK, said revenue in those shops was up 70pc on last year in the 20 weeks to January 14. This offset a downturn in sales in its high street stores, where revenues slipped 2pc on last year.
Chief executive Carl Cowling said WHSmith is expecting "another year of significant growth" as more people book holidays abroad.
“The group is in its strongest ever position as a global travel retailer."
Overall, the ONS said transport costs are now rising more slowly than they did before the war in Ukraine and have been falling for six months.
There’s little sign of respite for shoppers though, as food prices continue to soar and remain at a 45-year high.
