The increasing demand for travel after the corona pandemic is giving airlines wings again, according to a study. Because while airline tickets are now only available for much more money than before, kerosene has become cheaper.
According to a survey by Allianz Trade, airlines are back in the black. “After three years of heavy losses, the aviation industry could return to profitability in 2023 – earlier than expected,” Milo Bogaerts, head of Allianz Trade in Germany, Austria and Switzerland, said Monday when presenting the study. “However, the lack of capacity remains the bottleneck.” That should delay the flight of the airlines for the time being. “For consumers, this also means that flying is likely to remain expensive.”
Big summer
The German AUA parent company Lufthansa is aiming for an operating profit above the level of the quarter before the crisis of 2019 for the just past spring quarter. “We are entering the summer with the highest sales in the history of our company,” said Lufthansa boss Carsten Spohr in early May. Because ticket sales are currently about a quarter higher than in 2019, the year before the outbreak of the Corona crisis. With a high occupancy rate of the aircraft, the capacity offered will still be below the pre-crisis level.
Demand is increasing despite high prices
According to a survey by Allianz Trade, passenger demand is increasing despite high prices. In the first quarter of 2023, global passenger-mile sales increased by a whopping 58 percent within a year and nearly 86 percent from pre-pandemic levels.
The increase in Asia was especially strong as part of China’s reopening after the corona lockdowns with plus 125.5 percent. “Europeans are also flying away more and more,” explains Maria Latorre, industry expert at Allianz Trade. “The holidays are just around the corner and consumers are getting back on a plane after the pandemic and energy crisis.”
Global airfare sales this summer (May-September 2023) grew 35.2 percent year-on-year to 92 percent of 2019 levels, while North American sales were already at 99 percent, it said. At the same time, flight prices have increased, especially for international routes such as those between the US and Europe – by 23 percent year-on-year.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
