The companies and their passengers they benefit from the dramatic fall in oil prices? Yes, but only in part, because of competition and the complexity of the pricing of airline tickets (AFP / File / Philippe Huguen)
The companies and their passengers do they benefit to the dramatic fall in oil prices? Yes, but only in part, because of competition and the complexity of the pricing of airline tickets, say industry experts.
The price of air travel is set according to a myriad items: flight distance, class seat, any correspondence, meal trays or cost of depreciation of aircraft, maintenance, airport charges, cost of crew and of course the cost of kerosene, which thus constitutes a factor among others .
This is not because the price of oil has fallen by more than half a year to go under the symbolic 50 dollars (48.79 dollars on the Intercontinental Exchange in Friday closure) that air travel will cost half the price.
“You do not buy crude oil but kerosene. So you have to pay the cost of refining,” further explains a door Floor-Air France, adding that the fuel prices decrease more slowly than the barrel (“10% less”).
The tumble barrel should nevertheless significantly reduce the oil bill in 2015 carriers air, even if the companies that have signed contracts to “cover” safe putting a fuel price hike will not fully benefit today from the drop in prices.
Some passengers at Orly airport September 15, 2014 (AFP / File / Kenzo Tribouillard)
This is the case including Delta, United and Air France. – KLM
For the latter in 2015, “the group’s fuel bill should be reduced by about 600 million euros compared to 2014″ on an estimated total of $ 6.6 billion, said Yan Derocles, sector specialist at Oddo Securities.
It could be reduced by € 400 million to the UK IAG (British Airways, Iberia) and even 1.3 billion euros for German Lufthansa. Delta Airlines expects it, two billion dollars (1.77 m EUR) saving kerosene this year.
However, all companies do not necessarily find that flexibility in their accounts because in a ultraconcurrentiel sector, they are forced to lower their prices.
According to the Association International Air Transport Association (IATA), the average ticket price in the world is expected to decline by 5.1% this year.
In France, the main federation of the sector, FNAM (National Aviation Federation Merchant) has long denounced the continued decline in prices that exerts pressure on carriers.
In 2014, fares from France (all companies) to the International were down 1.1% compared to 2013 and 1.6% compared to 2012. With even greater ratios for trips to Asia (-5.5% in 2014 compared to 2013, -7.3% compared to 2012 ) and Latin America (-4.4% compared to 2013, -1.8% compared to 2012), according to data from the Directorate General of Civil Aviation
-. A “godsend” for US companies –
Yan Derocles explains that most European companies already reflected the decrease in the prices of their tickets unlike American.
“It’s a matter of competitive environment and pricing power + +,” said he. “In the US, the market has recently been consolidated, giving companies a certain power pricing which most European majors do not have.”
The demand on the home network also remains solid.
In Europe, few carriers pick market share, adding capacity and especially a consumer pressure to reduce prices.
Virgin Australia, Japan Airlines and Qatar Airways, they announced the reduction of the fuel surcharge and therefore the ticket price on some of their destinations.
“European legacy carriers must maintain their cost reduction efforts to continue their recovery, “Yan Derocles analysis.
The same limited decline in revenue will cancel the saving on fuel costs at current levels of fuel prices and the euro exchange / dollar, said Air France.
Meanwhile, the US Delta Airlines and United see falling prices as a “godsend”. They intend to take the opportunity to clean up their books and pamper their shareholders.
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