Latest news with #airfares
Khaleej Times
a day ago
- Business
- Khaleej Times
UAE: Will airfares rise after Wizz Air Abu Dhabi's exit? Etihad CEO responds
The future of UAE airfares following Wizz Air Abu Dhabi's planned exit will be determined by supply, demand, and market dynamics, according to Antonoaldo Neves, chief executive officer of Etihad Airways. 'The market is the king, so it doesn't matter who is leaving, who is entering, and who is adding capacity. The key question is how will supply and demand be in the future? If there is less demand, fares are going to go down,' Neves told Khaleej Times in an interview last week, when asked about the impact of Wizz Air Abu Dhabi's departure on ticket prices. The ultra-low-cost carrier recently announced it will suspend operations in Abu Dhabi starting September 1, 2025, and dissolve its joint venture. Its promotional fares starting at Dh79 gained strong popularity among UAE travellers, especially those flying to Eastern Europe and CIS countries for tourism, thanks to its affordability. Stay up to date with the latest news. Follow KT on WhatsApp Channels. Wizz Air cited three main reasons for its withdrawal: engine reliability issues exacerbated by the region's hot and harsh climate, geopolitical instability, and regulatory challenges. The airline said it will now focus on its core markets in Central and Eastern Europe, along with selected destinations in Western Europe. In 2024 alone, Wizz Air Abu Dhabi operated over 19,000 flights, providing more than 4.4 million ultra-low-cost seats. It carried more than 3.5 million point-to-point passengers, contributing around 25 per cent to Zayed International Airport's total point-to-point traffic. Additionally, the airline brought more than 1.2 million international visitors to Abu Dhabi last year. Until now, Abu Dhabi has been home to three major airlines: national carrier Etihad Airways, Air Arabia Abu Dhabi, and Wizz Air Abu Dhabi — offering services that cater to every segment, from luxury travellers to budget-conscious flyers. 'I don't know how supply and demand is going to react in the next year or so, because it doesn't depend only on Etihad (as other carriers also operate in UAE),' Neves added. Etihad chief was speaking after receiving delivery of the first of its 30 Airbus A321LR. Despite the airline's exit, aviation analysts expect minimal disruption. 'Wizz Air leaving Abu Dhabi does not leave a gap at all. Wizz Air tried to create something that frankly didn't exist — and we saw the same when AirAsia X came and fled Abu Dhabi within six months,' said Saj Ahmad, chief analyst at London-based StrategicAero Research. Neves also addressed the perception that Etihad is inflating fares. 'We price to demand and competition. So I don't know what fares are going to be. If there's a lot of demand and we don't have planes, the fare goes up. Otherwise, they go down,' he said. 'The notion that Etihad is charging more is just wrong.' He emphasised that the region's aviation market is expansive and can accommodate a variety of carriers. 'In the UAE, we have four amazing airlines — flydubai, Emirates, Etihad and Air Arabia. They all make money. So there is a space for premium carriers, a space for intermediate carriers, and a space for low-cost carriers. The UAE is one of the best markets in the world. We should be very proud of all that,' Neves concluded.
Skift
6 days ago
- Business
- Skift
American Airlines CEO on AI Pricing After Delta Backlash: ‘I Don't Think It's Appropriate'
Ever since Delta mentioned it is using AI to set prices on domestic flights, the backlash against the carrier has grown. American Airlines CEO Robert Isom sought to distance the carrier from growing backlash over the use of AI to set airfares, saying Thursday that American would not use the technology in a way that could erode consumer trust. Isom didn't name Delta, but his comments were in response to a question about a competitor's use of AI. 'For us, of course, we're going to find ways to get our product in front of consumers,' Isom said during a call with analysts. 'But consumers need to know that they can trust American, OK? This is not about a bait and switch. This is not about tricking and others that talk about using AI in that way, I don't think it's appropriate. And certainly, from American, it's not something we will do.' Delta has received criticism from lawmakers and con
Bloomberg
6 days ago
- Business
- Bloomberg
American Air CEO Says Using AI to Set Fares Is a ‘Bait and Switch' Move
American Airlines Group Inc.'s top executive blasted the use of artificial intelligence in setting air fares, calling the practice inappropriate because it could trick travelers. 'Consumers need to know that they can trust American,' Chief Executive Robert Isom said on a call with analysts after the company reported earnings. 'This is not about bait and switch. This is not about tricking.'
Skift
22-07-2025
- Business
- Skift
Delta's Use of AI for Setting Fares Sparks Concern in Washington
Some are concerned that Delta's use of AI could lead some customers to pay more airfares given the pricing system's individualized approach. Delta Air Lines said this month it had started testing AI to set some airfares, and lawmakers and consumer advocacy groups in Washington are expressing concern about how the practice might affect customers. Delta president Glen Hauenstein said during a call with analysts that the carrier was using AI to price 3% of its domestic fares, and planned to use the technology to price up to 20% of domestic fares by the end of the year. The carrier had already started experimenting with AI for pricing and reservations in 2023. 'We're in a heavy testing phase. We like what we see,' Hauenstein said. 'We like it a lot, and we're continuing to roll it out, but we're going to take our time and make sure that the rollout is successful as opposed to trying to rush it and risk that there are unwanted answers in there.' Delta ha
Yahoo
21-07-2025
- Business
- Yahoo
Ryanair profit more than doubles as fares jump
Quarterly profit at Ryanair has more than doubled after the Irish airline benefitted from higher air fares and a later Easter. Profit after tax rose 128 per cent to €820m (£710m) over the three months ended June, alongside a 21 per cent increase in ticket prices. Revenue rose by a fifth to €4.34bn as the low-cost carrier reported a four per cent increase in passenger numbers to 57.9m, at a load factor of 94 per cent. Chief executive Michael O'Leary said quarterly air fares had 'substantially benefitted' from having a full Easter holiday in April, alongside a weaker prior year comparison. Ryanair forecast a summer fare hike in May after a year in which lower fares caused a 16 per cent drop in profit. O'Leary said it was too early to provide meaningful annual profit guidance amid highly variable external factors, including conflict in the Middle East and Ukraine, the risk of tariff wars and European air traffic control 'mismanagement.' The airline earlier this month called on the president of the European Commission, Ursula Von Der Leyen, to step down after industrial action by French air traffic controllers caused hundreds of flight cancellations. Ryanair hits out at Boeing delivery delays Ryanair on Monday pinned full-year passenger growth of just three per cent on 'heavily delayed' Boeing deliveries. It took in five new Boeing 737 Gamechangers over the quarter, bringing its total fleet to 618. 'This summer we will operate over 2,600 routes, including 160 new routes, and we're seeing strong summer travel demand across our network,' O'Leary said. 'Our group airlines capacity constrained growth is being allocated to those regions and airports who are cutting aviation taxes and incentivising traffic growth, and we expect this trend to continue.' Competitive fuel hedging would provide a 'key advantage' amid volatile oil markets, the airline added, with the 2026 financial year nearly 85 per cent hedged at $76bbl.
