Trouble for airlines over flight prices in South Africa

The South African aviation industry is under pressure, with members of parliament calling for an inquiry into high ticket prices.

Parliament Portfolio Committee on Trade, Industry and Competition said that the Competition Commission should investigate South African airlines for their exorbitant ticket prices.

As reported by News24, committee chairperson Mzwandile Masina said that local airlines, including FlySafair, Lift, and CemAir, have increased prices to levels that make travel unaffordable for South Africans.

The committee noted that some budget airlines have displaced the embattled South African Airways as budget airlines.

That said, their costs are seen as exorbitant and unaffordable for South Africans.

Masina added that an inquiry into the issue would ensure that South Africans can afford to move from province to province.

The commission also wants FlySafair to explain its alleged noncompliance with local laws.

Similar inquiries have taken place in the past, with the Competition Commission investigating the fresh produce market in South Africa, including prices, in 2023.

Flight price skyrocket

A recent analysis from BusinessTech showed that local prices in South Africa have skyrocketed over the last two years.

The analysis took the average round-trip flight prices between Johannesburg, Cape Town, and Durban across airlines such as FlySafair, Lift, Airlink, and SAA. The prices for flights were compared in November 2022 and 2024 for dates over the December holidays.

The largest increase was for flights from Johannesburg to Cape Town, which increased by R2,098 (43.4%) from an average of R4,830 in 2022 to R6,928 in 2024.

Meanwhile, flights to Durban rose by R943, or 31.7%, to an average of R3,920 in 2024.

According to industry experts, the causes of these flight price increases are multifaceted.

December is usually peak travel season, which leads to heightened demand and elevated prices.

Moreover, the airline industry is facing significant capacity constraints. The liquidation of Comair in 2022 significantly reduced the nation’s airline capacity.

Despite other local players such as Lift, FlySafair, and Airlink have filled some of the void left by Comair, the industry is still recovering.

FlySafair’s Kirby Gordon said that capacity has returned to roughly 70% of pre-pandemic levels, which leaves travellers with fewer options during high-demand periods​.

Jet fuel prices have also jumped, adding to cost challenges.

Following Russia’s invasion of Ukraine in 2022, global oil supply disruptions have driven fuel prices up by more than 80%.

This issue is worsened by South Africa’s reliance on imported jet fuel as local production is insufficient. This makes the local market vulnerable to exchange rate volatility.

The weakening rand has also increased the cost of importing fuel and maintaining aircraft, which are usually leased and serviced in dollars​.

Airlines now allocate over half of their operating expenses to fuel, which they pass on to the consumer.

The slow pace of economic recovery and recent inflationary pressures have also limited the industry’s ability to absorb rising operational costs.

Although some local carriers, such as Lift, have expanded their routes to meet demand, these measures have not been able to curb flight prices.

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