Strong air travel recovery in US, Europe, Latin America but Asia lags
International air travel is showing strong improvement this year with the exception that of Asia-Pacific, where “significantly behind” according to International Air Transport Association.
International travel in 2019 was 25% lower than it was last year. Willie Walsh spoke out as the director general for the industry group. “The first quarter of 2019 across the globe it was at about 25% of where it was in 2019.Squawk Box Asia” Tuesday.
“In reality, we are seeing a very strong growth rate on some markets. These include the U.S. and Europe as well as Latin America. They all touch around 60%.
Walsh stated that the air travel costs in Asia are “only 13% less than it was in 2019”.
China continues to pursue its goals zero-Covid policyWith Beijing and Shanghai tightening travel and business restrictions, He said that China’s restrictions on travel will not have a major impact on global aviation recovery.
“The positive is that there are lots of other markets opening up so airlines have an opportunity to expand their network … to those markets,” he added.
Walsh was asked whether the recovery of the aviation business sector will occur at the same pace as the pre-pandemic level.
“We get a lot of business people traveling in economy … business recovery is lagging slightly,” he added.
“But, I think everyone would now admit that it won’t have the fundamental structural shift we had hoped for.”
He observed the contrary and said that there were more “premium” travelersWho are traveling in the first or business class.
“That points to what has been a very important segment of the market, which we call premium leisure … what we’re seeing there is people have more disposable income and are prepared to pay for that premium and experience.”
“I completely expect premiums [to]Walsh stated that they would continue to make rapid recovery efforts.
In order to satisfy this demand airlines are offering luxury cabinsTo get high-paying customers on board, they will pay extra for additional space.
Singapore Airlines, for example, observed that economy-class seats were selling faster than business class seats. This is an “inverse of a trend pre-pandemic.”
The IATA recognizes that air travel recovery is gaining momentum but faces “some challenges”. global air cargo market.
“We had record performance in 2021 and continues to improve in 2022 … but it’s just dipped a little bit behind those highs of 2021.”
Walsh mostly attributed the incident to Russia’s attack on Ukraine. “A lot cargo was transported by Russian cargo operator, security has been completely destroyed,” he said.
IATA stated in a reportAir cargo volumes fell 5.2% in March, compared to the previous year.
The report stated, “The conflict in Ukraine caused a decline in capacity to serve Europe as many airlines based in Ukraine or Russia were critical carriers in this region.”
Omicron is spreading in Asia and China, causing labor shortages and new lockdowns. They have had a significant impact on manufacturing centres in China and Asia, which in turn has hurt air cargo transportation in the markets that are connected to Asia.