Could Cheap Flights Revitalize the Airline Industry?

The airline industry is one of the most affected sectors in the past year. The airline industry lost around 425,000 jobs since the pandemic started. And despite the number of people that have been vaccinated, commercial airline traffic is still below 45% to its pre-pandemic levels.

The US and other countries have provided financial assistance to the industry. On top of that, the airline industry was forced to lower its price to lure travelers to travel again. But is it working?

How cheap is a cheap flight?

Department of Transportation in January announced that US domestic fares dropped to $245 by Q3 of 2020, which was the lowest on record. That’s 30% down compared to the same quarter in 2019.

In Australia, Regional Express holdings Ltd. competed against Qantas Airways and Virgin Australia Airlines and offered their dirt-cheap flights for Sydney-Melbourne at $62 one-way. The airline offers nine return trips daily for this route. The move was made possible by using smaller propeller planes. And also, Rex is looking to hire 400 additional staff including 80 pilots to offer its new services.

For Flair Airlines Ltd, the Canadian company is doubling its network with fares starting at just $31. The company is anticipating that there’s a pent-up demand from travelers to visit friends and family. President Stephen Jones said that “affordable air travel within Canada is the first step in restarting travel and tourism”.

Fly All You Can?

Airlines are not just offering cheap one-way flights. Southeast Asia’s Air Asia is looking to sell a fly-all-you-can travel pass for $146. This ticket allows travelers to fly in Malaysia and other ASEAN countries for a year.

Getting people to travel again can get tricky. The Centers for Disease Control and Prevention announced that it still discourages people from traveling despite being fully vaccinated. Also, there is also the problem of vaccination delays in developing countries.