CRISIS in the miles market: 123 miles and a 22% increase in airline tickets

CRISIS in the miles market: 123 miles and a 22% increase in airline tickets
CRISIS in the miles market: 123 miles and a 22% increase in airline tickets

According to a recent survey by the “Viajala Barometer”, the year 2023 is being marked by a significant increase in the prices of national airline tickets. Comparing to the same period last year, between January and October this year, there was a 16% increase in the cost of flights.

However, the rise did not stop there. Since a recent crisis in the miles market, more precisely in the last two months, there has been another wave of increase that reached 22% in the average price of tickets for round trips.

Rising ticket and mile prices

According to experts in the field, these two increases reflect different aspects of the market. The 16% increase, more consolidated, was monitored throughout the year and directly impacted the comparison with the average price of the previous year. The 22% increase, evident in the last two months, seems to be a more immediate impact, almost a reaction to the crisis in the miles market. There is, therefore, the expectation that this second increase may show more chances of retreat over time.

How the study on miles was produced

The starting point considered by the study was the day when 123Milhas, a popular company in the miles market, announced for the first time the suspension of issuing tickets on the Promo line. This occurred on August 18, 2023.

The analysis compared the average ticket prices for round-trip flights on various routes, before and after this milestone. Let’s say, for example, the route between the cities of São Paulo and Rio de Janeiro. On this route, the average ticket price rose from R$477 to R$759, an alarming increase of 59%.

Did the miles crisis affect all airline routes equally?

The route between Porto Alegre and São Paulo also showed this upward trend in prices. The increase was 45% in the average price of a round-trip ticket. Before the crisis, the average value was R$633, rising to R$920 in the following two months.

However, not all routes were negatively affected. Of the 10 routes that were analyzed in more detail, only Brasília – São Paulo showed a price drop. The round-trip flight on this route had a 22% reduction in average price, falling from R$602 to R$471.

After all, what will the next steps of the ticket market be like?

The news of rising national ticket prices undoubtedly raised concerns. However, the scenario over time, mainly due to the reactive nature of the second increase, may change and present setbacks. Monitoring these movements is crucial for both Brazilian companies and consumers.

The article is in Portuguese

Tags: CRISIS miles market miles increase airline tickets



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