In September 2021, news wrote about record low plane ticket prices. Now a plane ticket from Tromsø to Oslo for NOK 300 is something we can look forward to. At the turn of January-February, Flyr filed for bankruptcy and more expensive prices were predicted. Now it looks like the prediction is correct: Tickets from both SAS and Norwegian show a price of well over 1000 for the Tromsø-Oslo route, just over a year and a half ago the same ticket cost NOK 300. The cheapest tickets from Bodø to Oslo have increased slightly; from NOK 349 to NOK 829. The reason is complex, says Winair AS flight analyst Hans Jørgen Elnæs. – The market must understand that the airlines have been through the biggest crisis ever with both the pandemic and the war in Ukraine, so things cost a little more. – That the prices will go up is not surprising, but the question is how much, says flight analyst at Winair AS, Hans Jørgen Elnæs. Photo: Marit Sirum-Eikre / news Can’t raise the prices too much news has previously written that there is no room for more airlines in Norway. – Wizz Air couldn’t make it even though they had very cheap flights between the north and south of Norway. Flyr has also held on for a while, but they were also unable to fill up their flights even though they had the lowest prices. Even if Flyr is out, SAS and Norwegian still compete. But according to the aviation analyst, there is less price competition. – I think the market must expect that the time of the very cheapest plane tickets will not return again. – It is important that we have airlines with a healthy economy so that we can have a good flight route offer in Norway. Driven the prices right up to bankruptcy news has compared the price difference between September 2021 and March 2023 to get a picture of what tickets in the “near future” will cost. According to Elnæs, however, it is important to include some caveats. – September is an intermediate season, so it may help to lower the prices a little. Other than that, September and March are comparable. In addition, September 2021 was at the very start of Flyr and therefore the prices were even lower than usual. But; according to Elnes, Flyr drove prices down throughout the period up to the bankruptcy. See the price difference in September 2021 and March 2023: Greater competition in Europe When the airlines now set their prices, they must also take people’s finances into account – because people generally have less to travel with now than before, says Elnæs. The general price increase is something that affects the whole of Europe, but outside our national borders, flight prices are still somewhat cheaper than we see in this country. There is more competition in Europe than there is domestically in Norway. Thus, price becomes an important element which means that we see a supply price level in Europe, according to Elnæs. – In addition, we have more taxes and fees in Norway than in the EU, he adds. The cost picture is complex – When prices were low in September 2021, the country was still affected by the pandemic and its consequences. Among other things, there were still entry restrictions to Norway, says Norwegian press officer Eline Hyggen Skari – Although prices are somewhat higher now than then, it is possible to buy plane tickets at a reasonable price. The prices of plane tickets are dynamic and are controlled by supply and demand, and if you book early, you get the cheapest tickets. – The challenge in Norway is not the number of airlines, but the capacity of aircraft seats in the market – which makes it perhaps difficult to enter Norway with more capacity, says aviation analyst at Winair AS, Hans Jørgen Elnæs. Photo: Vidar Ruud / NTB According to Skari, the most price-conscious use the company’s low-price calendar, as well as make use of offers in connection with sales campaigns. – The cost picture for a plane ticket is complex and consists, among other things, of fuel costs as well as taxes and duties, says Skari. The competing company SAS, but it is these taxes and fees that make it expensive for people to fly. Especially in the rural areas. The image shows SAS (left) and Norwegian’s air ticket prices for the Tromsø-Oslo route in March 2023. Graphic: Screenshot SAS and Norwegian Demand more commitment from politicians – Airlines like SAS operate in a low-margin industry, i.e. high costs and low earnings. That’s according to SAS’s press manager, Tonje Sund, who also points to a general price increase in society, as well as a large emphasis on special Norwegian taxes in aviation. – In general, the total tax and levy pressure is so high that it weakens the competitiveness of Norwegian airlines, which in turn leads to it being too expensive for people to fly – especially in the rural areas. She requests more commitment from the politicians in Northern Norway to make it possible for the airlines to lower prices. Willingness and ability to pay will, according to Tonje Sund, always be individual and therefore it is difficult to say how high the prices can go before people choose not to travel. Photo: Vilde Helljesen / news – Overall, it is important to be aware that the majority of the price of a plane ticket is taxes and duties, which are set by the authorities. When asked if the era of cheap tickets is over, Sund says that they cannot predict the future. Price developments going forward will depend, among other things, on macroeconomic conditions such as oil prices, inflation and general price developments in society, combined with the tax and levy levels set by the authorities, says the press manager. – In this sense, it is only a part of the ticket price that the airlines themselves can influence directly. – Book well in advance After the pandemic, Hans Jørgen Elnæs has seen a trend where more people buy plane tickets closer to the departure date than before. – If you book well in advance and plan, the chances are much greater that you will get a nicer travel budget. – We have to expect that flight prices will increase, especially in the high seasons. You should strike when the prices are favorable. When Flyr went bankrupt, senior legal advisor at the Consumer Council, Thomas Iversen, asked people to be careful when booking tickets. – I recommend that you check the price with several companies, feel free to use search engines and do your homework. The price for the trip can go up and down, so please keep an eye on it over a few days if you are planning a holiday trip.
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– The airlines have been through the biggest crisis ever – news Nordland
