{"id":803025,"date":"2024-12-08T17:00:00","date_gmt":"2024-12-08T15:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=803025"},"modified":"2024-12-06T12:56:18","modified_gmt":"2024-12-06T10:56:18","slug":"how-much-airlines-make-per-passenger-in-south-africa-vs-the-world","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/803025\/how-much-airlines-make-per-passenger-in-south-africa-vs-the-world\/","title":{"rendered":"How much airlines make per passenger in South Africa vs the world"},"content":{"rendered":"\n

An aviation expert has highlighted that airlines are not entirely at fault for the high cost of flight ticket prices\u2014which only make up around 14.65% of the amount global airlines make from each passenger\u2014and the government is partly to blame.<\/p>\n\n\n\n

South African airlines have been criticised for what they have described as “exorbitant” ticket prices. <\/p>\n\n\n\n

The Parliament Portfolio Committee on Trade, Industry, and Competition has called for the Competition Commission to investigate. <\/p>\n\n\n\n

However, an aviation expert has pushed back against the criticism, highlighting that airlines themselves are not solely to blame for high travel costs.<\/p>\n\n\n\n

Earlier this week, committee chairperson Mzwandile Masina raised concerns that rising airfares have made domestic travel inaccessible for many South Africans. <\/p>\n\n\n\n

Masina singled out budget carriers like FlySafair, Lift, and CemAir, accusing them of driving up ticket prices to levels unaffordable for most citizens. <\/p>\n\n\n\n

He emphasised the need for an inquiry to ensure affordable mobility between provinces.<\/p>\n\n\n\n

However, Linden Birns, managing director of an aviation consultancy, has painted a more nuanced picture.<\/p>\n\n\n\n

Speaking with CapeTalk<\/a>, Birns noted that South African airlines operate under unique and challenging conditions that drive up costs. <\/p>\n\n\n\n

Birns explained that the affordability crisis in South African air travel is partly tied to broader economic factors. <\/p>\n\n\n\n

On average, a domestic ticket in South Africa costs 2.8 weeks\u2019 worth of income, while international flights require 6.5 weeks\u2019 income. <\/p>\n\n\n\n

By contrast, passengers in the European Union spend approximately three days\u2019 income on local flights and less than a week\u2019s income on international travel.<\/p>\n\n\n\n

Despite this, South African airlines earn just a fraction of what their global counterparts make per passenger\u2014R17 per flight compared to the global average of R116. <\/strong><\/p>\n\n\n\n

This means local carriers generate only 14.65% of the revenue per passenger that airlines worldwide enjoy.<\/p>\n\n\n\n

\u201cAirlines are not the villains here,\u201d Birns said, highlighting that a significant portion of ticket costs stems from government-imposed taxes and levies. <\/p>\n\n\n\n

These charges can account for up to a third of the total ticket price, creating a heavy burden for both airlines and consumers.<\/p>\n\n\n\n

Domestic airlines in South Africa are subject to several government taxes and levies.<\/p>\n\n\n\n

These include excise duties on jet fuel, often influenced by international oil prices, a flat air passenger tax imposed on all departing domestic passengers, 15% VAT applied to domestic airline tickets and ancillary services, and carbon taxes\u2014among others.<\/p>\n\n\n\n

These charges significantly inflate operating expenses, leaving airlines with razor-thin margins. <\/p>\n\n\n\n

Birns stressed that government intervention, such as reducing these levies, could make air travel far more affordable.<\/p>\n\n\n\n

The situation illustrates a unique situation where South African airfares are disproportionately high relative to average incomes, yet local airlines struggle to achieve notable high profitability. <\/p>\n\n\n\n

With ticket prices seen as exorbitant by many, a public perception of greed has emerged. <\/p>\n\n\n\n

However, Birns emphasised that the root cause lies not in airline pricing strategies but in a mix of structural and regulatory challenges.<\/p>\n\n\n\n

The debate highlights the complexity of South Africa\u2019s aviation landscape, where high costs reflect not just airline pricing but also the broader economic environment. <\/p>\n\n\n\n

A collaborative approach\u2014balancing government policy reforms and industry innovation\u2014may hold the key to unlocking affordable air travel for South Africans.<\/p>\n\n\n\n

\n\n\n\n

Read: Trouble for hotels and restaurants in South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

An aviation expert has highlighted that airlines are not entirely at fault for the high cost of flight ticket prices.<\/p>\n","protected":false},"author":92,"featured_media":645191,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[10493,17142,20371,853],"class_list":["post-803025","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-airlines","tag-capetalk","tag-department-of-trade-industry-and-competition","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/803025","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=803025"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/803025\/revisions"}],"predecessor-version":[{"id":803310,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/803025\/revisions\/803310"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/645191"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=803025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=803025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=803025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}