Airline costs ‘likely to remain under pressure’ – KM Malta Airlines’ David Curmi

Airlines in Europe are likely to see cost pressures continue in the medium term, according to KM Malta Airlines Executive Chairperson David Curmi.

However, he says there are several ways to mitigate the increase, with airlines, airports, air traffic controllers and other players in the aviation ecosystem all playing a potential role.

Mr Curmi was speaking to MaltaCEOs.mt in light of recent Eurostat data showing a sharp increase in the average price by passengers for a flight ticket to or from Malta between 2023 and 2025. The data is not about any specific airline, but rather is about general air travel prices for consumers.

KM Malta Airlines was contacted to provide some insight into the situation. Asked whether he believes general airline ticket prices will continue to rise in the coming years, Mr Curmi said it would not be accurate to assume that airfares will move uniformly upwards across every route.

“Airline ticket prices are dynamic and are strongly influenced by competition, demand and available seat capacity. Where capacity exceeds demand, fares may remain under pressure or fall. Where demand is strong and capacity is constrained, average fares may increase.”

Nevertheless, he said, “the underlying cost base of European aviation is likely to remain under pressure. Airport and air-navigation charges, maintenance and supply-chain costs, regulatory obligations, environmental compliance and the increasing use of Sustainable Aviation Fuel are all likely to affect the cost of operating flights.”

These pressures, he said, can be mitigated.

They can be mitigated through greater operational efficiency, investment in newer and more fuel-efficient aircraft, improved airspace management, competitive airport and ground-handling arrangements, and measures that accelerate the availability of sustainable aviation fuel at a more competitive price, Mr Curmi explained.

“For Malta, maintaining strong and sustainable airline competition is especially important. However, the objective should not simply be the maximum possible number of seats at any price. The long-term priority should be reliable year-round connectivity, adequate capacity, competitive fares and commercially sustainable air services that can continue serving Malta over the long term.”