S&P Global Ratings has raised its European air passenger traffic forecasts ahead of the key summer season in expectation that travel demand will continue to resist economic pressures, according to its recent report.
Robust demand, particularly for short-haul leisure trips, and tight capacity for European networks will continue to characterize the market. The result is likely to be high ticket prices during 2023, which should continue to offset inflationary pressures on airlines’ cost-bases. Discretionary spending on travel is supported by Europe’s low unemployment levels, accumulated savings, and pent-up demand following COVID-19 (particularly for high-end travelers).
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