Recent reports from the German Statistical Office have shown a significant increase in airfare prices following the pandemic. International flight prices witnessed a 25% increase, while flights to Europe experienced a sharp rise of 32% compared to the previous year.
Despite the nearing end of the expensive summer holiday season, it is not expected that flight costs will decrease as the autumn season approaches.
The German aviation market is grappling with taxes
With the start of the autumn holidays in Hamburg, the price of a flight heading to the Spanish city of Malaga reached 443 euros, while the airline Condor is charging 499 euros for the same route.
The reason for the price increase can be attributed to the high fees imposed on airports in Germany. Germany enforces some of the highest airport fees, aviation security charges, and aviation taxes in Europe.
As a result, low-cost airlines such as Ryanair, EasyJet, and Wizz Air have avoided flying in Germany.
Ryanair’s CEO, Eddie Wilson, described the structure of aviation fees in Germany as “non-functional and non-competitive.” He warned that his company would not prioritize expanding in Germany due to the high costs.
The primary reason behind the price increase is the unfavorable supply-demand ratio. The German aviation market is recovering at a much slower pace after the pandemic shock compared to other European countries.
Gerald Wissel, an expert at the consulting firm Airborne, pointed out several reasons for the rise in prices.
Inflation has led to a significant increase in costs, from labor to maintenance services. Airports and air traffic control have also proportionally raised their fees.
Wissel added that German air traffic control faces a specific legal issue, as they are required to operate on a cost-recovery basis, a practice not uniformly followed in all European countries.
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