Expensive air travel reduces demand

Business travel keeps increasing but leisure travel falls back

Just as airlines were starting to see a return to healthy growth, higher fuel costs are pushing them to raise ticket prices – something that is having a direct impact on demand. According to the International Air Transport Association, signs of slowing demand are already clear. Growth in economy-class seating slowed to 3.3% in February year-on-year, from 5% in January. “Economy-travel volumes appear to have been trending downward since October,” IATA said in a report. “The 34% rise in jet-kerosene prices over that period and the impact on travel costs may now be causing price-sensitive passengers to cut back.”
British Airways increased its one-way fuel surcharge last week to a range of $150 to $170, while Qantas raised its fee by 52% to $303. Global business travel indicators, however, remain buoyant.
[pictured: Star Alliance lounge, Paris CDG Airport, Terminal 1]


Check Also

IATA, payment, credit card, account, bank, new, system, platform, pilot, project, test, fraud, fees

Airlines to test sales without credit cards

In a pilot project overseen by IATA, some airlines will soon start to allow payments direct from bank accounts.

IATA, technology, travel agent, airlines, Norway, payment, system, NewGen ISS, transparency, TP, Finland, Denmark, Sweden

“Payment transparency” goes live in Nordics first

IATA’s new scheme for airlines and travel agents goes live in Norway, Sweden, Finland, later Denmark.

airport, wayfinding, startup, fund, award, IATA, airline, technology, blockchain, artificial intelligence, augmented reality, AI, personalisation, baggage

Awards for passenger experience start-ups

IATA launches a competition to recognise big new ideas in personalisation, wayfinding and baggage.

Amadeus, Flight Centre, GDC, NDC, IATA, travel agent, technology, distribution, wholesale, retail, sales, flight, ancillary

Nordic agents to benefit from Amadeus deal

Amadeus and Flight Centre announce a “strategic partnership” to push progress with the IATA-launched NDC.

Qantas, Perth, London, Heathrow, direct, non-stop, first, route, flight, Australia, UK, Dreamliner, Joyce, strategy, long-haul

First direct route between Australia and UK

Qantas flies non-stop between Perth and London Heathrow – but is it the world’s longest?

IATA, technology, travel agent, airlines, Norway, payment, system, NewGen ISS, transparency, TP, Finland, Denmark, Sweden

Norway debuts new agent-airline pay system

IATA’s NewGen ISS goes live in “technologically advanced and innovative” Norway.