As More Airlines Enter the Market, Cheaper Flights should be Offered


According to House of Travel, there will soon be more affordable flights available, especially to North America due to intense competition in the industry.

This is happening at the same time that seven airlines will use Auckland Airport as their hub to launch nonstop flights to eight US cities this summer.

One airline is offering economy return tickets for less than $1000.

Multiple airline options helped drive down prices, according to House of Travel Chief Operating Officer Brent Thomas, who spoke with Morning Report.

“Pricing usually stays higher in monopolistic or duopolistic environments, but there are now close to ten carriers operating in North America. Because of the lower price, it increases demand, which is advantageous for New Zealand, according to Thomas.

According to him, the cost of airfare for travel to the US is starting to resemble pre-Covid levels.

“It’s clear that American Airlines is entering the market with fares under $1,000 to Los Angeles from Auckland. This takes us back to the days of low-cost airlines in 2019, when such fares would have greatly increased demand for travel to the United States and other countries,” according to Thomas.

He anticipated that the current record-breaking levels of travel demand would persist until 2024.

“We saw in North America just yesterday, they announced why their inflation has dropped and one of the significant components of that was the travel part and we are seeing that all around the world,” said Thomas.

“And New Zealanders are taking advantage of that, and they’re travelling to all parts of the world not just in Australia and in the South Pacific but to Europe particularly as well.”

However, more tourists were entering the nation as a result of the additional flights than simply leaving Aotearoa to travel overseas.

Chief customer officer of Auckland Airport Scott Tasker expressed excitement about having a sizable inbound tourism market in New Zealand.

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