Loading

Jet fuel prices spoil the airline party as demand returns – slowly: Part 2

Premium Analysis

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.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,371 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.