ABN Amro: The era of cheap flights in Europe is over
ABN Amro recently stated that the era of being able to book cheap flights for travel within Europe is a thing of the past, as governments increase taxes and tighten environmental regulations.
ABN Amro: Cost of flying in EU to increase this decade
According to the major Dutch bank, keen holidaymakers should prepare for the cost of international air travel to increase over the coming few years. As an example, ABN Amro highlights the fact that a return ticket from Amsterdam to Barcelona or Rome is likely to go up by as much as 47 euros, while the price for returns to Athens or Lisbon will rise by over 50 euros.
Indeed, ABN Amro economist Stef Driessen says that the days when travellers could book return flights for under 30 euros are behind us. "The cost of flying within Europe is going up sharply," Driessen told NOS. “The almost free tickets will probably come to an end,” he added. However, he did accept that some budget airlines such as Ryanair and Easyjet may occasionally continue to offer low-price tickets “as a marketing tool.”
Dutch government raises taxes, EU announces tougher CO2 rules
But what is the reason for the imminent significant price hikes? For starters, this year the Dutch government has significantly increased the so-called flight tax - the excise duty charged on airline tickets - from just 7,95 euros per ticket to 26,43 euros. The cabinet hopes this will further encourage travellers to make use of other kinds of transportation.
Stricter emission legislation in the EU is also contributing to the increases, as from 2026, airlines will have to purchase the rights to produce CO2 emissions in order to run flights to and from airports in Europe. The EU hopes the laws will encourage airlines to accelerate their sustainability efforts, but ABN Amro expects the costs will simply be passed on to passengers.
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