Jean-Pierre Sauvage: The current dynamism is generated by the leisure clientele.
Despite the upward adjustments made to the prices, we are not on the prices practiced in business travel. Afterwards we very clearly observe an uptrend, even if we don’t know if it will last over time.
This dynamic is explained by a stronger demand than the air supply, still down compared to 2019, to this you add the surge in the price of the barrel and you obtain a price increase, as has been seen the DGAC.
The mismatch between supply and demand has led to an increase prices for flights to the West Indies from 7 to 8% for example.
TourMaG.com – Can you gauge the consequences of the price per barrel?
Jean-Pierre Sauvage: We are already seeing an impact of barrel prices on ticket prices. This does not yet reflect evolution.
Currently, everyone is satisfied with the occupancy rates of their devices for the summer, it is somewhat the objective of all market players. We will see later, the real effects of the oil surge.
In short, everyone takes advantage of the call for air, to rush in and take advantage of the renewed dynamism.
To this you add the inclusion of sustainable aviation fuel (SAF) at 1%, which is anything but a panacea at the economic level. SAF will have fairly long-lasting consequences on prices.
TourMaG.com – Instead of being seen as a hindrance, SAF could also become a marketing argument. I am convinced that travelers are ready to put a few euros more, with the promise of traveling more cleanly…
Jean-Pierre Sauvage: The consumer, we are already asking them through compensation.
As much as some are extremists, as many others do not have such a thorough consideration of their responsibility in ecological terms. Compensation is not the philosopher’s stone, to drastically reduce CO2.
The future of this significant decline will go through SAF or a technological breakthrough. The European Green Deal, whose objectives we can discuss, because 2% of SAF in 2025 and 5% in 2030, the account is far from there.
In addition to not having the production capacities, the cost is high, in the range of 4 to 8 times higher than oil.
TourMaG.com – It is strange to note an increase in ticket prices, when they still do not reflect the price of the barrel. There is always a time lapse of several months. Isn’t the worst yet to come?
Jean-Pierre Sauvage: Of course there is a lag, except that we find ourselves with a desire to make its airline offer profitable.
If the demand is there, but the supply is not always suitable, there is an adjustment phenomenon. We are still in this market mechanism.
Carriers do not have long-term cover, and the rise in oil prices does not date from the outbreak of the war in Ukraine.
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