Demand for air travel has returned to pre-pandemic levels after a prolonged surge, as holidaymakers and travelers are deterred by increased fares, according to executives from major airlines at the Farnborough Airshow on Monday.
Guliz Ozturk, CEO of Turkey's low-cost Pegasus Airlines, stated that the airline anticipates flat yields—a metric of the average fare paid per mile by each passenger. She noted that travelers are prioritizing cost-effective travel options.
Campbell Wilson, CEO of Air India, predicted a moderation in the international market over the next six months. Meanwhile, Luis Gallego, CEO of BA-owner IAG, highlighted that business travel is still in the process of recovery from the Covid-19 crisis, which saw travel nearly cease with borders closed and planes grounded.
These remarks follow Ryanair's announcement earlier on Monday of a larger-than-expected decline in quarterly profits, attributed to a 15% drop in fares. The airline's management indicated that ticket prices are continuing to fall.
