CAIRO, 18 Nov. (Aswat Masriya) - EgyptAir announced that the ticket prices of its international flights will be pegged to the dollar, its chairman Safwat Mosallam said in a press conference on Thursday.
"The cost of international flights is paid in US dollars, which will be affected by the recent flotation,” he said.
For international flights, the decision will be in favour of the passenger, because it will ensure that the prices are not manipulated in light of the flotation, he explained.
Earlier in November, the Central Bank of Egypt decided to float the Egyptian currency and free the exchange rate according to supply and demand.
EgyptAir's decision does not apply to domestic flights. However, Mosallam reportedly told other local media outlets that the company will consider applying this to domestic flights as well.
Member of the parliament's tourism committee Amr Sedky told Aswat Masriya that the dollar exchange rate fluctuation can definitely affect the ticket prices, noting that the fluctuation has increased the jet fuel prices and the overall services provided to passengers.
“However, it’s possible that the prices also decrease, depending on currency influx," he said.
He said the best system to be applied in this case, when the currency rate is unstable, is the yield system, whereby the company divides the seats into several classes, within the economy or business class, with different prices for each class.
According to Sedky, this is one way the company can get a total revenue that is proportionate to its expenses.
The company had earlier announced in late August that the losses totaled approximately $14 billion since the January 25 uprising in 2011, amid diminishing tourism traffic to the country.