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

Star Alliance, airlines, digital, technology, share, data, members, mobile, app, website, seat, book, interoperability

Star Alliance improves digital inter-usability

The alliance creates a digital services platform for customers using more than one member airline.

Gunnar Garfors, Norwegian, record, fly, round the world, airlines, flights, Sydney, Emirates, Iberia, Copa, Qantas, Dutch

Norwegian man sets round-the-world record

Passenger sets new Guinness World Record for travelling the world on scheduled flights.

Star Alliance, RTW, round the world, fare, ticket, mobile, app, flight, stopover, stops, themes

Star Alliance enhances its round-the-world fares

Globetrotting with just two stopovers is now possible, the alliance says, and with almost infinite options.

Copenhagen, CPH, airport, Nordic, Stockholm, where, confirm, Air India, dreamliner, 787, new route, Delhi,

Air India to be split up and sold

Debt-heavy flag carrier links Delhi with Scandinavia.

Oslo, airport, OSL, tax, government, budget, 2018, travel industry, business, airlines, low-cost, Ryanair, Rygge, VAT

Passenger and capacity growth in Norway

Domestic traffic grows rapidly, while Turkish upgrades Oslo route

Eurozone, EU, Brexit, UK, tourism, travel industry, GBTA, Etihad, Ryanair, finance, analyst

What Brexit means for travel and tourism

Skift highlights comments from industry players