Flights to and from Cyprus have become significantly more expensive this summer, as jet fuel shortages triggered by the Strait of Hormuz crisis combine with reduced routes and strong seasonal demand to push ticket prices sharply higher.
Phileleftheros found increases of up to 50% on some routes to Greece compared with last year, equivalent to €100 to €120 more per ticket. Deputy Minister of Tourism Costas Koumis, speaking on CyBC, put the average increase at €88 for non-European destinations and €29 for intra-European routes.
‘A matter of supply and demand’
Haris Papacharalambous, President of the Cyprus Association of Travel and Tourist Agents, acknowledged that prices had clearly risen but said the increases for Cyprus remained relatively modest by current standards. “It is a matter of supply and demand. Of course, fuel costs have affected all destinations — it is not just Cyprus,” he said.
He noted that Athens held particular significance for Cypriot travellers, often serving as a transit hub for longer-haul routes. “This affects the supply and demand dynamic for Athens,” he said.
At European level, he said recent increases had been in the range of 2% to 5%. For Cyprus specifically, he said the rises had so far been small enough that demand remained close to last year’s record levels.
He added that EU rules were far stricter than those in the United States, where airlines can consolidate flights more freely. “In the European Union there is very strict legislation that does not allow airlines the margin to consolidate. Last-minute cancellations are usually for technical reasons, not load factors,” he said.
Reduced frequencies were also a factor, he said, citing airlines that had cut daily services on some routes. “Where a carrier was flying five times a day, it may now operate three times. Several European destinations have been affected, and that is where the reduction in available seats comes from,” he said.
Book now, fly midweek
Papacharalambous urged travellers planning summer trips to book immediately. “The sooner they do it, the better. That is the only thing I can advise people to do. Because as the days pass and supply falls relative to demand, prices will keep rising,” he said.
He also recommended flying midweek rather than at weekends, and considering travelling outside the peak summer months. “Right now you can find a return from Larnaca to Athens in September for €220. For this time of year that is historically high. If I adjust it slightly and switch the Friday I had chosen to weekdays, the return comes out at €90,” he said.
Koumis described the pressure on airlines as significant, citing recent announcements from major carriers. “A few weeks ago a very large airline announced it was cutting frequencies by 100 routes. Another well-known airline grounded an entire subsidiary with 27 aircraft. Another well-known low-cost carrier decided to close its Berlin base. All of this affects each destination differently, depending on its connectivity,” he said, adding that despite the difficulties Cyprus had built strong air links in recent years.
IATA: higher costs will reach passengers
The International Air Transport Association (IATA) said ticket price increases across Europe were inevitable, given the surge in jet fuel costs caused by the Strait of Hormuz crisis.
IATA Director General Willie Walsh, speaking to the BBC, said that while some airlines had recently cut prices in Europe in response to weaker demand, carriers could not absorb higher operating costs indefinitely. “There is no way airlines can continue to absorb the extra costs they are facing,” he said.
Walsh said some temporary offers and discounts might continue to stimulate demand, but warned that “over time it is inevitable that the high price of oil will be reflected in higher ticket prices.”
He also cautioned that even if the Strait of Hormuz reopened immediately, the effect on fuel prices would not disappear quickly. “However you look at it, this problem will continue for several months and may even extend into next year,” he said.
European Commission launches fuel observatory
The European Commission announced it would establish a Fuel Observatory to monitor the production, imports, exports and stock levels of transport fuels across the EU, with the aim of identifying potential shortages quickly and directing targeted measures to maintain balanced fuel distribution across regions and airports.
The Commission also said it would clarify existing flexibility provisions within the EU aviation framework to address flight cancellations and other disruptions, and committed to promoting the wider use of EU-produced sustainable aviation fuels.
Read more: