Jet fuel prices spoil the airline party as demand returns – slowly: Part 2
Jet fuel prices alone present a formidable challenge to airline profitability in coming months.
But the industry faces more fundamental issues on the demand side, as regrowth stumbles on.
International market recovery is most challenged, and that is particularly so in Asia Pacific as the China powerhouse remains stagnant for most of the remainder of 2022. Full "recovery" to modest 2019 levels is unlikely to be achieved in that region until 2025.
Yet it is not just Asia Pacific where the going will be tough.
Stuttering market regrowth, hampered by fuel costs in the air and at home, means fares must rise significantly to compensate for reduced passenger numbers. That is not an equation that is easily balanced.
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