Airlines expect yields – a measure of the average fare paid per mile by each passenger – to remain flat as customers go “back to basics” and look for the most cost-effective way to travel
Jul 22, 2024
Demand for air travel has normalized after a years-long boom following the COVID-19 pandemic, as holidaymakers and travelers balk at higher fares, executives from major airlines said at the Farnborough Airshow on Monday.
Key takeaways
- Demand is there, but now, as before the pandemic, travelers are looking for the cheapest, lowest, best price for their travel;
- Demand for flights within Europe was still strong, but yields were under pressure, which was reflected in Ryanair’s results, with the airline forecasting a 15% drop in quarterly profits as fares fell, and management saying that ticket prices would continue to deteriorate;
- Business travel was still recovering from the COVID crisis.
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