According to Jonathan Ayache, CEO of Lift, airfares are much cheaper than last year.
In the past year, airfares in South Africa skyrocketed with an increase of more than 60%. The increase was due to fewer available local flights due to the pandemic.
Tickets have dropped in price this month, but that may not be good news for the industry and consumers.
Ayeche also shared that pre-Covid, demand for air travel was around 80%, even though demand has still not fully recovered, according to Business Tech reports. He continues to say that the number of people who can afford to fly to South Africa will be reduced depending on the country’s domestic macroeconomic situation.
In 2022, Comair faced liquidation. The company operates multiple airlines including Kulula.com and was a domestic partner for British Airways in South Africa. The company shut down 40% of domestic airlines. The liquidation resulted in an increase in the ticket price.
However, the industry is seeing some positive changes as the domestic market becomes oversupplied with low demand.
“There is an oversupply, which seems great for passengers at the moment because they can get cheap return tickets to Johannesburg; however, it is not sustainable. You see what happened with Mango (and) Comair – it’s not good for the competition,” said the CEO.
Ayeche said there is an opportunity for the airline industry once the economy starts to recover and gets the hang of shedding.
Airline tickets are becoming affordable in South Africa
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