The fall in crude prices and the removal of almost all travel restrictions can support passenger traffic and bring it back to pre-pandemic levels
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Summer is almost here and it seems, despite inflation, travelling may become more popular again as almost all COVID-19-related restrictions are removed and crude oil prices seems to be quite low compared to those one month ago.
FXMAG.COM: Inflation seems to be slowly and gradually decreasing. Crude oil price is significantly lower than previous summer, would you expect airlines to increase their revenue in the second half of 2023?
Alex Kuptsikevich (FxPro): The fall in crude oil prices and the removal of almost all travel restrictions can support passenger traffic and bring it back to pre-pandemic levels. Apart from the lifting of limitations, it is worth mentioning the desire of some people to compensate for sitting at home in previous years.
According to FlightRadar24 statistics, the number of flights is already 18% higher than in 2019 for the same period and 15% higher than in 2022
According to FlightRadar24 statistics, the number of flights is already 18% higher than in 2019 for the same period and 15% higher than in 2022. This is good news in terms of potential revenue for airlines. The bad news is that many airlines were bailed out or got support lines from their governments during the pandemic, and now is the time to pay those debts. So it's worth choosing airlines very carefully as they may be forced to give up too much of their profits.
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