IATA welcomes airline sector recovery
09-09-22
IATA's chief executive said the July data indicates that the industry's recovery is continuing and gaining momentum. For domestic flights, Walsh explained that there is a strong recovery as 2022 progresses; the phenomenon is particularly evident in China, where the domestic market is rebounding with good values. The July figures also show that the cargo business is more or less where it was in the year before the pandemic, implying a solid cargo performance.
Regarding Latin America, Walsh said the region saw a strong recovery in cargo business during July, with some disruptions due to the war in Ukraine.
International traffic values show that, overall, the sector is 75 per cent of where it was in 2019 and is expected to continue to improve. Region by region the picture shows progress, although Asia Pacific appears significantly behind 2019, at 35 per cent over 2019. "We are seeing continued good progress in other regions," Walsh said.
He also talked about jet fuel prices, a key cost driver for airlines, saying that "although you've seen Brent oil prices come down a little bit, jet oil prices are still very, very strong, very high. And that will continue to put pressure on the airlines' cost base through the rest of the year". Which means a big challenge for airlines going forward.
"We have seen good traffic figures during the peak summer in the northern hemisphere, and domestic markets are now recovering well with increased activity in the Chinese domestic market. And we expect this to continue now into the August and September figures, given the positive trends we are seeing in advance bookings," Walsh said, closing by analysing the outlook for the industry as positive now and going forward.
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