Regional Snapshot: the return of travel on the competitive trans-Atlantic

FESCH.TV INFORMIERT:

The trans-Atlantic market has been a competitive marketplace, but recovery is still at an early stage.

Passenger traffic on long haul routes has – predictably – been weaker than on short haul routes during the COVID-19 pandemic. At times trans-Atlantic schedules had fallen to just one quarter of ‘normal’ levels during the health crisis, and they still remain a long way down on pre-pandemic levels.

Most airlines are betting on a significant rebound in trans-Atlantic travel in the summer of 2022 as pent-up demand will finally be unleashed, but in what will be a more competitive landscape, with new arrivals competing on product and price in both business and leisure markets.

The reopening of some of the most lucrative air routes in the world represents a big step forward, however:

How will the competitive environment take shape as that demand returns?

Could potential new virus variants threaten the rebound?

How big a slice of the pie will new entrants secure?

Will reduced business travel demand hurt airline yields?