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Airlines may be reaching the limits of passenger tolerance for high fares

Anyone betting that travellers have become immune to price might be taking a big risk

Last week the Paris Air Show recorded the highest level of firm aircraft orders in 15 years. Yes, the majority of those came from two Indian airlines with deliveries planned over the course of the next decade. But the bullish sentiment that drove those orders seems to be shared across the globe as passengers shrug off soaring air fares, record inflation and concern over potential recession to book their holidays.

After a dire three years, airline executives are revelling in bumper bookings and in the flying public’s apparent tolerance for ever higher fares.

But for how much longer? Not much, would be my guess. According to data cited by the Airports Council International Europe, global airfares in May were about 36 per cent higher than in 2019. Hopper, the US travel app, estimates that fares from the US to Europe are up 23 per cent on 2019. Virgin Atlantic says north Atlantic fares on its routes are up 35 per cent over the same period. 

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