Tail-Off in Business Passengers Hits Airlines Analysis

The HeraldOctober 16, 2009

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Summary


THE global airline industry is struggling to return to profit despite signs of a revival in air travel and evidence of economic recovery, but many carriers are facing intense pressure to cut costs by reducing staff numbers and eliminating some services and routes.

Giovanni Bisignani, the director general of Genevabased IATA - the International Air Travel Association - said this week that he foresees "at least nine months before we see an improvement in business traffic", which delivers the bulk of profit to carriers.

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Tail-Off in Business Passengers Hits Airlines Analysis

"What is dramatic is the decrease in the business traffic, " he said while visiting New York. He said that business travel may return but with a lower profit than in the past.

"Planes are loaded but with low yield, " he added.

IATA ...

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