Synopsis: In the latest U.S. reports, the data shows a 1.8% decline in airfare in the month of May and June. The decline in airfare was seen at a time when consumer expenditure and prices surged at the fastest level in the last four decades.
The last two months were tough for airways, especially in Europe, to cope with the travel demand. The shortage in airport staff and flight cancellations resulted in long queues at the airport. An increase in airfare added one more problem for travelers to travel in Europe and other parts of the world.
All these problems compelled travelers to rethink and reschedule their travel plans for the summer. The surge in inflation has also cut down consumer expenditure leading to uncertainty in the future. After the summer season it is expected for the travel industry to pick up the pace but this time the outlook looks uncertain.
In the latest U.S. reports, the data shows a 1.8% decline in airfare in the month of May and June. The decline in airfare was seen at a time when consumer expenditure and prices surged at the fastest level in the last four decades.
Despite the drawbacks, the surge in summer and spring travel after the pandemic has been quite good and is seen as a boon for airlines. In the recent reports of American Airlines and Delta Air Lines, the revenue that airlines generated this year is more than the revenue in 2019 even after fewer flights compared to pre-pandemic.
Right now, the main concern of airlines is the management and quality of service to the passengers. Airlines are positive that more passengers will increase in the future and people keep on spending money on traveling. However, there is a little bit of uncertainty due to the increase in inflation.
Long queues, flight cancellations, and high airfare has already impacted on traveling industry in some ways. Travelers are expecting some leeway in fares after the summer season. Though the airlines are seeing an increase in revenue after long two years of the Covid outbreak, they are also reluctant to hire more staff because of uncertain future.