Setting the record straight on airfares and inflation

Prompted by false statements from IATA on airfares and inflation, ACI EUROPE proceeded to set the record straight based on data from independent and authoritative sources.

While IATA stated that airfares in Europe only increased by +16% as of June this year compared to 2019, independent and authoritative data from RDC showed such increase actually standing at +38% over the peak Summer months (Q3) – nearly two times the increase in the average consumer prices index (+20.8%). October confirmed this trend with air fares even increasing further at +47% when booked 3 months in advance.

IATA’s assertion that airport charges have been continuously increasing above inflation also does not stand scrutiny – as it relies on flawed data from just 2 airports. In fact, airport charges in Europe this year have increased by +13.6%, far below inflationary pressures hitting airports, let alone airfares.

EU airfare monitor – wanted!

Not accepting reality, IATA sought to challenge ACI EUROPE’s factual evidence in an Opinions Blog on the topic. In response, ACI EUROPE provided several other sources indicating clearly that airfares are surpassing the lofty limits of corporate ‘greedflation’, thus going beyond inflation markers.

Beyond the immediate need to settle on the correct percentage increase, ACI EUROPE identified a bigger problem at the root of the present discussion. Namely, the absence of an EU-wide airfare monitor. Such monitoring exists in several countries, including France, but also the United States – a major liberalised market where airlines freely set their prices. Establishing an ‘EU Air Fare Monitor’ would not involve departing from the principle of free pricing for airlines, but it would provide much needed transparency over the functioning of the Single Aviation Market – notably as regards airline pricing power and its impact on consumers. This would be especially relevant now that the market is set for a significant wave of airline consolidation and as infrastructure congestion and capacity limitations are set to increase.    

Read the full ACI EUROPE rebuttal and the follow-up LinkedIn article.