Why are airline prices so high? Supply and Demand

In the news of late has been the outcry from consumers of the increase in the price of domestic airline fares, in some case 300% higher than they were pre-pandmeic. So why have they gone up so much? It’s a simple matter of supply and demand.

Below is an interview with Air New Zealand CEO Greg Foran talking about what is driving up airfare prices. Pick the supply and demand causes.

The topic supply and demand on elearneconomics has fully integrated flash (cue) cards linked back to the key notes that assist students to understand economic vocabulary, improve their skills, develop knowledge and build their confidence.