Kerosene Crisis
AUA: Higher Ticket Prices, New Fare Without Carry-On Baggage
The rise in kerosene prices caused by the war in the Middle East is also affecting the domestic aviation market leader. Austrian Airlines passengers should prepare for higher ticket prices, according to AUA CEO Annette Mann. At the same time, she defended the new Economy fare, which requires passengers to pay extra for carry-on luggage.
The new Economy Basic fare on short- and medium-haul flights incurs additional costs for bringing a small carry-on suitcase. Anyone wishing to bring a trolley must book it separately and pay extra. Handbags, laptop bags, or small backpacks are exempt from this rule.
“If you want to bring a trolley, it has to be worth it to you”
The airline’s CEO defended the offer on “Ö1-Mittagsjournal” on Saturday. This expands the range of options at the lower end, Mann said: “Anyone who wants to bring a trolley and says it’s worth it to them can, of course, continue to do so.” This would also keep AUA ranked higher on comparison sites, which are mostly price-oriented. And the low-cost share in Vienna is between 25 and 30 percent.
Tickets are getting more expensive
Currently, AUA is not yet affected by the kerosene shortage. However, passengers should expect higher ticket prices due to rising fuel costs. The supply of kerosene is secured through the summer. In Vienna, the OMV refinery in Schwechat ensures a reliable supply. According to the AUA CEO, there is no kerosene shortage in China, Japan, or North America. Within Europe, there is room to increase fuel purchases.
It is impossible to predict the extent to which prices will rise. There are two million prices on the market. Price changes are also determined by demand. For a ticket costing 200 euros, the increase might be five euros on one route and 30 euros on another. “I would like to see a ten percent increase on top of what we’re currently paying. Then we’d likely be able to manage the kerosene prices,” said Mann.
Ultra-short-haul flights unprofitable, but important for the region
Furthermore, despite their economic unprofitability, Mann spoke out against canceling ultra-short-haul flights. “I wouldn’t need these ultra-short-haul flights,” she told the ORF radio station. For her, the debate is more about a regional issue. “If I were making a decision based purely on economics, I probably wouldn’t have the Innsbruck, Klagenfurt, or Graz flights in our portfolio anymore, but of course we also see ourselves as having a responsibility to the region.” For example, Innsbruck has already lost its flight to Frankfurt.
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