Anonymous
Do you foresee this happening? Or will the inverse occur?
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Angeline Teo
01 May 2020
Calculator at The Internet
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Elijah Lee
26 Apr 2020
Senior Financial Services Manager at Phillip Securities (Jurong East)
Hi anon,
My guess is that they will remain low for a while. Humans are creatures of habit, and we would be hestitant to take to the skies again after being grounded for so long. Hence, for airlines to return to operation, they would need to fill seats to at least break even, and the only way to appeal to the leisure traveller is to offer low prices. Although the most margins are made in business and first class, but the leisure traveller will still contribute a small proportion of the profits. Once a plane takes off, whichever seat is empty stays empty, and it will be in the airline's interest to monetize whatver it can by filling whatever seats it can, before the doors are closed prior to departure.
Once demand starts to show signs of sustaining at a certain revenue level, we may see a slow uptick in prices.
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There has to be a way to "re-set" consumers' perception towards flying, so I won't be surprised if t...
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I have a different view from most.
i think airline prices will be higher in the future because of social distancing, they may want to keep their flight not 100% full to attract customers.
to do that, every ticket has to be sold higher pricing