Budget airlines could stop offering cheap flights due to the Ryanair and Monarch chaos
Cheap flights have increased in the past decade, with some passengers being able to fly abroad for as little as £4.99 each way.
The market has become saturated with those trying to meet the trend, with many including EasyJet, Ryanair, Norwegian Air, WOW air and Wizz Air, to name a few.
Monarch Airlines was also one of these until it recently went bust, causing thousands of travellers to be stranded abroad.
Along with the pilot-shortage and flight cancellations of Ryanair as well, this could cause cheap flights to no longer exist.
With less competition, it means they can hike their prices up if they so choose
Is this the end of budget airlines?
Since the collapse of Monarch, flight prices have risen substantially.
Since 15 September, Skyscanner research found that destinations within Europe were up to £30 more expensive than compared to before that date.
The saturated market may also start to become less of a competition if others continue to fold.
Along with Monarch, two other European airlines Air Berlin and Alitalia also went into administration this year, leaving the way clear for airlines such as easyJet.
The British airline has even reported a profit increase, and with less competition, it means they can hike their prices up if they so choose.
And with it’s rival Ryanair currently suffering, the airlines may not need to offer the cheap fares much longer.
Budget airlines such as easyJet and Ryanair may not have to compete for lower prices
Will all flights be affected?
Destinations that aren’t in Europe but are served by budget airlines could still remain at a cheap price.
Airlines including Norwegian Air and WOW air also fly to destinations in North America and Asia, offering lower air fares.
Monarch cited the recent terrorist attacks in Tunisia and Egypt as part of the reason for the company going bust due to less demand for the destinations.
And with uncertainty in Brexit surround the flights travelling between the UK and Europe, heading further abroad may be the best way to save the pennies on holiday.
Budget airlines such as Monarch going bust could cause long term affects for cheap travel
Whilst some industry insiders feel that many issues such as the cut-throat price competition for the lowest price, as well as the pilot shortage in the aviation industry, some feel that it won’t be a problem just yet.
Deirdre Hutton, chair of the Civil Aviation Authority (CAA) told CNNMoney regarding the Monarch collapse: “I’m actually not worried. I think this was a set of issues that was very specific to Monarch.”
Yet Ryanair’s CEO Michael O’Leary stated last month that there will be just five European airlines in the next five years, including Ryanair and EasyJet.
The other three included Lufthansa, Air France-KLM and IAG.
Despite the conflicting views, the next few months will be a large shift in the low-price battle, where consumers could be the ones to be hit the hardest.