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Air connectivity recovers further but still below pre-COVID
The improvement in air connectivity is consistent with the ongoing recovery seen in air passenger and cargo markets over the course of 2022.
- Chart of the Week
Declines in unit cost and yield expected to continue in 2023
The airline industry has seen a remarkable decrease in real unit costs by over 4 times, and a near 6 times reduction in real yields.
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Europe accounts for half of all new airline ‘’births” in 2022
Globally, the year 2022 brought about 39 new commercial airline operators bringing airline “births” back to pre-pandemic levels.
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Inflation likely peaked in 2022 in OECD countries
Different scenarios show that inflation likely reached its highest levels last year
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China to reopen border to international travelers
The Chinese government announced that it would reopen its border to international travelers on 8 January 2023
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Air transport and 2022 FIFA Football World Cup in Numbers
In November and December 2022, for the first time in history Qatar hosted the FIFA Football World Cup. As a result, bookings to Qatar skyrocketed.
- Chart of the Week
2023 to bring further pax recovery but softer cargo
Passenger markets are recovering strongly as more routes are opened while cargo volumes have begun to ease in 2022 from their recent highs
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A return to industry profitability in 2023
A return to profitability in 2023 would imply the speediest recovery in the industry's history, in relation to the depth of the downturn.
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A Historically Resilient Industry
Over the past 50 years up until 2019, the international air transport industry experienced more than a twenty-fold increase in annual Revenue Passenger Kilometers (RPKs).
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Japan’s weak currency dampens outbound travel
The yen has lost more than 15% of its values year-to-date, making it more expensive for Japanese travelers to go abroad.
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Travel rebounds as restrictions ease except in China
China's international ticket bookings remain at less than 5% of the pre-pandemic level for the third year in a row.
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Europe Needs Connectivity Provided by All Types of Airline Business Models
Consumer welfare is best optimized by ensuring healthy competition among a vibrant and innovative array of business models.
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Airlines’ funds blocked in the foreign exchange turmoil
Exchange rate movements cause airlines and other businesses finding themselves unable to repatriate funds they are owed
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How the weak euro is affecting European travel demand
Travel from the euro zone is now exhibiting greater price sensitivity in their bookings given the exchange-rate disadvantage of the Euro
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The Preighter Cargo Operations are Fading Away
The frequency of preighter flights has begun to decrease primarily due to the resumption of mixed passenger-cargo operations.
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