EU pressures airlines over soaring fares

Brussels is probing the recent rise in air fares across Europe after airlines pushed up prices by as much as 30% over the summer, leading to bumper profits. Adina Vălean, the EU’s transport commissioner, told the Financial Times that EU officials were “looking into detail . . . of what is exactly going on in the market and why”. The EC does not have the power to regulate air fares, but Vălean’s intervention adds to pressure on airlines over the recent price rises, triggered by a travel boom and supply chain issues. She said she was seeking explanations from airlines about the rise in fares and the potential barriers to connectivity in the bloc. Average air fares across Europe were between 20-30% higher over summer 2023 compared with 2019, according to EU data released in October in response to a question in the European parliament. Vălean said she had no plans to intervene in the “functioning” aviation market but the commission needed more details of the industry dynamics that had led to the higher prices. “We are still investigating because we don’t have a full, detailed explanation,” she said, particularly on whether the fare rises were a long-term trend. Brussels is concerned that high air fares could affect the EU’s outer regions, such as islands or isolated territories that rely on aviation for connections with the rest of the bloc. “We cannot go as a regulator into micromanagement of prices or imposing that, I don’t think this is doable or desirable,” Vălean said. “On the other hand, what I as a regulator worry [about] is that a price [could] become a barrier for connectivity. “We are in a permanent conversation with the industry . . . to understand what the cause of this development is.” Vălean’s intervention adds to political pressure on airlines over rising fares.<br/>