Global airfare volatility sharply increased in July compared with previous month, according to a new data metric released by FairFly.
FairFly’s Airfare Price Volatility Index, which measures how frequently airlines are repricing flights by tracking deviations on filed and booked fares, showed that volatility increased 152 percent in July compared with June. FairFly’s volatility index for July was 122.6, compared with 48.7 in June.
As a baseline comparison, the index measured volatility in February, prior to the Covid-19 crisis shutting down much of the global airline industry, as 94.8. In 2019, volatility largely stayed in the range of 60 to 80, according to FairFly. A score of zero would indicate static pricing.
“Such a high and rapid rise in July’s airfare price volatility shows a market struggling to come to terms with daily shifts in supply and demand compounded by airlines seeking to mitigate large losses,” according to FairFly.