Is there a price war for flights and does this mean the return of better airfares?

As a flight consolidator, it’s important that we are able to stay ahead of industry trends and bring our customers the latest information regarding airfares, group flights and news from major airlines across the UK. 

Recently, there have been several insights shared that suggest a price war among airlines could be about to take place, which could lead to more competitive airfares for many travellers. 

In fact, several airline bosses, including those at Ryanair and Wizz Air have recently made it clear that they believe a price war is already underway, with fares looking set to fall significantly in the next year or so. 

Why is this happening?

There are several key reasons a price war could be taking place right now. For one thing, some airlines are in the process of adding new aircrafts to their fleets, resulting in excess capacity. 

Providers like Wizz Air are incorporating a new Airbus aircraft into their fleet, one that is expected to bring about major changes to cost efficiency and air travel. 

These have an increased fuel capacity and enable them to fly for up to 11 hours, reducing fuel consumption per seat by up to 30%. As a result, Wizz Air has ordered 47 of these planes and they look set to take off by February next year.

The launch of new routes 

Not only this, but lots of budget airlines are expanding their operations, particularly on popular and long-haul routes. 

In the case of Wizz Air, their new jets can facilitate the launch of new routes connecting the UK with Middle Eastern destinations such as Saudi Arabia, the United Arab Emirates and Kuwait.

The market is recovering post-pandemic

What’s more, the COVID-19 pandemic and subsequent lockdowns saw planes grounded for months and entire countries closing their borders. This had a serious impact on the travel industry as a whole. 

Now, as the industry begins to recover from the pandemic, airlines are eager to fill as many seats as they can. This has led to more competitive pricing, especially in regions where multiple airlines are vying for the same customers.

Consumers are more sensitive to prices 

In the face of the current cost of living crisis, more and more consumers are becoming sensitive to prices and are more aware of their spending. 

Although many will still travel, they are increasingly wary of the money they are spending and ensuring they get the most for their budget by using comparison websites and apps to find the best deals. 

Airlines must therefore respond to this by offering more competitive fares if they hope to fill planes and beat out the competition. 

Dynamic pricing models 

Lastly, airlines use sophisticated algorithms that allow them to adjust their airfares in real time based on factors like demand, competition, seasonal fluctuations and the cost of fuel. This often results in frequent promotions and price drops throughout the year. 

Of course, when one airline starts to lower their prices in this way, their competitors must follow suit if they hope to continue attracting customers.

How will this impact group travel? 

We’ve already touched on the impact that airline price wars can have on the travel industry but as a flight consolidator, we want to look more specifically at group travel.

In the short term, it’s likely that our customers will benefit from lower airfares as airlines compete for market share. 

Sure, we already focus on getting the best deals for all, but it’s likely that promotions, discounts and flash sales could become more common, making the savings on group travel even greater over the next year. 

If this price war continues to intensify past 2025, it’s possible that sustained lower airfares could become the norm, particularly on popular routes and those with significant competition. 

What we don’t want is lower prices and cost-cutting measures to impact the overall service quality or to result in additional fees for services that were previously included, such as increased baggage charges. 

So, while a price war among airlines can lead to better airfares and more budget-friendly group travel, this is only beneficial if it does not have a wider impact on service quality. 

Ultimately, it is down to the airlines to balance competitiveness with profitability, but for now, all we can do is hope that this battle for customers will make group travel more affordable than it has been over the last five years. 

If you are currently planning a trip for the coming year and need help with booking group flights, get in touch with our team today to find out how we can help bag you the best deal.