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17-Oct-2024 11:52 AM

EUROCONTROL: Airlines post strong 1H2024 results despite operational challenges

EUROCONTROL, via its 'Seven-Year Forecast Update 2024-2030 (Autumn 2024)', reported (15-Oct-2024) airlines posted strong results in 1H2024, despite operational challenges. Major airlines, including IAG and Turkish Airlines, significantly surpassed their 2023 performance, indicating strong market demand and industry resilience. However, geopolitical tensions are affecting airlines' competitiveness on certain flows, particularly to Asia, where re-routings have increased operational costs. Fleet issues, such as groundings caused by Pratt & Whitney engine maintenance and aircraft delivery delays, have slowed some airlines' expansion plans. Despite these challenges, airlines remain optimistic, as reflected in their winter schedules. [more - original PR]

Background ✨

Summer 2024 in Europe saw traffic levels exceeding expectations, with increased demand for leisure travel in Southern and Eastern regions1. However, significant delays due to weather, staff shortages, and geopolitical crises were reported, leading to operational inefficiencies and increased costs for airlines2. Despite these challenges, the airline industry's profitability is projected to improve, driven by strong demand and robust pricing power, though margins remain slim3 4.

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