by Donald Wood
Last updated: 8:35 AM ET, Mon July 22, 2024
Air travel demand in Europe has started to “normalize” after
a several-year-long boom following the COVID-19 pandemic, possibly signifying a
similar fate for the aviation industry in the United States.
According to Reuters.com,
European airline executives spoke at Monday’s Farnborough Airshow in the United
Kingdom and explained that travelers have less disposable income, resulting in
a desire to find more cost-effective ways to travel.
Several executives expect international demand to slow over
the next six months, while business travel continues to recover. With demand
declining, carriers have also been forced to lower ticket prices by as much as
15 percent.
"We have started seeing the normalization of demand,” Pegasus
Airlines CEO Guliz Ozturk told Reuters. “What does it mean? I mean, the demand
is there, but now the travelers are looking for, as before the pandemic, for
the most affordable, the lowest, the best price for their travel.”
Earlier this month, United
Airlines followed several other major American carriers by predicting third-quarter
profits to be below previous projections. While travelers are flying more than
ever this summer, airlines have prepared in excess, causing many to drop
airfares.
In May, American
Airlines cut its profit forecast for the second quarter, causing a slump in
its shares greater than what other airlines are seeing, despite the busy summer
travel season. Southwest Airlines also reported quarterly losses, while Delta Air
Lines CEO Ed Bastian revealed that earnings did not exceed analyst expectations.
Another worldwide issue facing the aviation industry is supply
chain woes, especially from
airplane manufacturers Airbus and Boeing. Ongoing delivery delays and supply
chain constraints have resulted in long waits for new aircraft to grow fleets
or parts to repair damaged planes.
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