Increased costs? Maybe the price of fuel. Inflation has only risen by 2-4% in the past year and the increase which i have seen farr outweighs this.
FTO's could IMO make a killing by making flying cost price and add a little on for profit. Equity groups etc charge cost price and only charge say £20 to cover instructor fee's and the group I'm thinking of makes a healthy profit.
If people shop around and look at other alternatives such as RAF civvy flying groups (waddington takes civvy's on) then you get flying at £80 approx including instuction.
This price increase says to me ...greed