While Ryanair CEO Michael O'Leary publicly emphasized again just a few days ago that he was expecting ticket prices to fall and thus increasing demand, the situation at the Lufthansa subsidiary Swiss is completely different. In Switzerland, it is assumed that ticket prices in economy class will rise.
This would also be related to the fact that the demand from business travelers, who occasionally also fly business and first class and thus generate around 40 percent of income, has plummeted. It is assumed at Swiss that even after the corona pandemic, many appointments will be made by telephone or via video conferences and that the demand from business travelers will therefore be permanently lower.
Swiss boss Thomas Klühr told Schweizerischer Rundfunk that, in his opinion, the premium economy will play an important role in the future. This would be relevant for business travelers who want a little more, but are not allowed to book business class due to requirements, for example. They also want to address those private customers for whom Business or even First is too expensive, but who accept the difference between Eco and Premium Economy.
Since the quota is at the expense of the cheapest class of transport, Swiss boss Klühr suspects that prices in the economy will rise. However, he puts the fact that it will be more expensive in the long term, but not yet in the coming year. That would be related to the fierce competition that lies ahead as demand picks up again. Another aspect that the outgoing Swiss General Director cites for the rising price trend are additional taxes, for example the carbon dioxide tax in Switzerland.