Ukraine International Airlines hikes its prices amid coronavirus panic

Ukraine International Airlines (UIA) has sharply increased prices for some tickets a few days before the complete closure of Ukrainian borders and the closure of its airspace to commercial flights.

Some Ukrainian customers posted pictures of their expensive tickets on social media, and one Ukrainian media outlet reported on March 14 that the UIA online booking portal showed a ticket from London to Kyiv on March 15 costing about $920. UIA London-Kyiv return tickets are usually around $250.

Get home

In his address to the nation on March 13, Ukraine’s president Volodymyr Zelensky urged Ukrainians to return from abroad within three days.

Ukraine International Airlines also made a statement, saying it would launch additional flights on its usual routes to bring home Ukrainian citizens who are abroad. It was prepared to offer extra help to the government too, the airline said.

UIA said it will fill the extra planes with economy class passengers only and noted that on March 17, commercial air travel to and from Ukraine will cease.

“UIA assures that it will provide all support to the authorities on the return of Ukrainians home,” the airline said. “UIA warns that the number of available openings on its own regular flights on the 15th and 16th March is limited, and therefore asks to treat the airline’s limited capabilities under force majeure circumstances.”

At the same time, Zelensky urged Ukrainain businesses to not raise prices and avoid exploiting customers during the viral pandemic, which has seen the demand for some goods and services increase.

“There are things you cannot make money off. This is war and people’s health,” Zelensky said in his televised address to the nation.

Price hikes

It appears UIA didn’t get the memo. Prices for tickets on urgently-needed flights have spiked by up to five times their usual cost, with some short trips costing as much as $1,000, the airline’s own website shows.

Reached for comments, UIA spokesperson Evgeniya Satska said it’s a common pricing practice in the aviation business and results from their automated pricing algorithms. The evacuation itself is having no influence on the prices, she said, but customer demand is.

“Of course, the price has risen, and this is not related to the situation – the closer to the departure date, the fewer seats left, tickets for which are sold at more expensive fare classes,” she told the Kyiv Post on March 15.

Algorithms and prices

Ukraine is due to close the border for foreigners on March 16, air traffic has to cease on March 17, starting midnight. UIA has put on extra flights to evacuate Ukrainians from London, Paris and Vienna over the weekend before the closure of airport borders.

A London flight, usually costing about $250 for a return, went up to $380 for a one way trip on March 15 and to almost $1,000 for a one way Kyiv-London ticket on March 16.

Flights from Paris, costing on average $500 for a return, jumped to $840 one way on March 15, and almost $1,400 for a one way Paris-Kyiv trip on March 16.

Concerning Vienna, Ukrainians willing to pay $400 will be able to come back home on March 15, and they would have to pay $765 on March 16. An Austrian Airlines ticket would cost them less, roughly $450.

Airlines suffering 

When asked about the price rises, Satska said the situation is very difficult for airlines at the moment, and that the flights in question are not part of an official evacuation.

“These are regular scheduled flights that are on the schedule,” she said, adding that UIA and other airlines were doing their best.

“It is about the viability of airlines,” Satska said, adding “many countries, realizing this, began to support their carriers” and that airlines would never voluntarily stop doing their main task, which is “to fly planes into the sky and deliver people to all points of the world.”

“Who made the decision to close flights? Who counted how many Ukrainians and non-Ukrainians who want to return? Who starts the panic that the last chance to return is March 17? And who told people how they will get home after this date?” Satska added.

The international travel and leisure industry is on the brink of catastrophe, analysts have warned.

Hotels and cruise companies are reporting heavy losses while airlines worldwide face shutdown and plummeting share prices as governments implement travel bans and people stay home.

Norwegian Air has warned it may default on debt payments and faces collapse “within weeks”, Dutch KLM says it plans to slash 2,000 jobs and German carrier Lufthansa may need a state bailout.

Source: www.kyivpost.com