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DOHA: Pent-up demand from the pandemic means consumers are weathering high airfares, but as summer ends and inflation and interest rate rises begin to bite, there are growing questions over whether the appetite for travel is sustainable.
Global airlines are now expected to post a $9.7 billion loss in 2022, a sharp improvement from a revised $42.1 billion loss in 2021, the International Air Transport Association (IATA) said on Monday, and to possibly claw their way back to profit in 2023.
But earnings remain well short of pre-pandemic levels as highly indebted carriers grapple with fresh challenges from rising fuel costs and high wages bills that they are attempting to pass on to consumers in the form of higher fares.
"We have a certain degree of insensitivity to prices this year," IATA Chief Economist Marie Owens Thomsen said, citing high household savings rates during the pandemic and pent-up travel demand. "That could fade into next year."
Industry leaders gathering at IATA's annual meeting in Doha said bookings generally looked very strong for the next few months, but there was less certainty beyond that.
"The demand is pent up. It is revenge travel," Malaysia Airlines Chief Executive Izham I *** ail said. "Airfares have gone up tremendously. It is not only in Malaysia or Malaysia Airlines – it is throughout the industry globally. If the price continues to be high the demand will taper off."
IATA forecasts yields, a proxy for airfares, will rise by 5.6% this year globally.
Air New Zealand AIR.NZ Chief Executive Greg Foran said fares at his airline were now running 20% to 25% above pre-COVID levels, in part to cover fuel prices that have more than doubled. Read full story
"We are communicating to our customers and letting them know... what they're seeing in ticket prices is not Air New Zealand trying to recover money that it lost over the last 800-plus days. It's about dealing with cost pressures that we have in front of us today," he said.
Consumers in many countries are now facing higher prices for everyday items such as groceries and gasoline that are rising faster than wages.
To date, that has not hit the appetite for travel, with many having saved up during the pandemic when many borders were closed and holidays were postponed.
Hawaiian Airlines Chief Executive Peter Ingram said demand from the U.S. mainland and Canada was "incredibly robust", with capacity running around 15% above pre-pandemic levels.
"It's impossible not to be aware of the fact that we're seeing a lot of inflation in the United States. But as we look at the demand right now, we aren't really seeing any effects," he said. "That's not to say we won't see some as the year goes on. But right now, all the demand indicators are very strong."Allbet Gaming声明:该文看法仅代表作者自己，与www.allbetgame.us无关。转载请注明：哈希游戏源码出售（www.hx198.vip）_Malaysia Airlines Izham I *** ail: \＂The demand is pent up. It is revenge travel,\＂