Consumer Corner: Are the days of cheap flights over?

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When the king of cheap flights, Michael O'Leary, declares that the price of flying will rise by up to 15% this year, it’s hard not to get worried. Are the days of the €10 flight to London coming to an end? Sure, the price of everything is going up but there’s something about cheap flights that we don't want messed with. The thrill of getting that bargain flight makes a trip away all the sweeter. Don't take that from us, surely.

Ryanair’s boss, Michael O’Leary announced earlier this year that he thinks airfares could jump by 10 to 15% in 2023. This follows predictions from other airline bosses that fares could increase by as much as 20%. 

This comes on the back of Mr O'Leary's declaration last summer that the era of the €10 flights is over. However, that declaration came as fuel prices were soaring. He said then that Ryanair's average fare would jump from around €40 in 2021 to around €50 over the next five years. All this talk is unsettling when we dream about our next getaway and the cheap flights that will allow us to get there.

Mark Coan, founder of money guide moneysherpa.ie said the energy crisis has hit the airline industry hard pushing up aviation fuel costs resulting in flight costs on some routes rising by 44%.

However, don't lose hope just yet as he said that now that energy costs are coming back down there are some good deals to be had.

"There is even talk of more competition with Easyjet apparently considering launching routes from Dublin. However, it's not clear that this will be the case for long.”

Earlier this month it was announced that low-cost airline, Easyjet secured slots at Dublin Airport which led to talk of an airline price war. Of course, competition is great for consumers but airlines have to make profits too so time will tell how things will play out here.

There’s so much at play too for airlines when it comes to setting their prices and according to Mr Coan, things to watch out for is the impact climate policies will have on the cost of our flights.

“With the climate impact of air travel in the sights of policymakers it's likely the industry will face larger tax bills which they will have to pass on to passengers, so longer-term cheap flights may well be a thing of the past.

“Travel though is one of the few things we spend our money on that can really bring us joy, and if the pandemic has taught us one thing it's best to make hay while the sun shines. So if you want to see the world there may be no time like the present."

Outside forces will continue to impact the cost of flights and fuel accounts for almost a third of the airfare. Easyjet CEO Johan Lundgren hammered that point home recently when he said that because of the 71% increase in oil prices year-on-year, their average fare had increased by 31%. 

There’s also a lot of regulation for airlines to manage and with strikes and drones impacting flight schedules airlines could also be paying out more in compensation than ever before for delayed or missed flights.

John Lowe of MoneyDoctors.ie said that there are still cheap flights available but you have to search hard to find them. 

He said that it's often much cheaper to travel from May to early June and late August through mid-October. He also said that Tuesday, Wednesday, and Saturday are the best days to book flights.

“Always look for special deals and check with the Skyscanner app. Still, the same message is to shop around.”

Other impacts on flight prices will be the desire more people have now to travel post-pandemic. For the first time in years, this summer presents as a restriction-free time to travel and this means that the old theory of supply and demand brings with it higher costs for consumers. 

Airlines also are raking in less revenue from business travel post-pandemic as many remote workers are travelling less for work than they may have done previously.

Fuel costs and taxes aside, airlines will no doubt continue to offer flash sales. However, when it comes to booking, it will pay to be the early bird. Last-minute flights will almost always cost more than they did months ago. 

Experts say that anyone booking flights with kids during Easter and summer holidays should be looking at booking their flights between November and February, when flights will generally be cheapest.

Flying has also become much more complex with baggage. There are now numerous tiers for booking a bag into the hold, bringing a bag on board, or even choosing where you sit. Weigh it all up before you book. Do your maths and book according to what you think you will really need.