Everyone when they are travelling looks to save both money and time, some want to save time and use alternative methods, while others want to save money. If you are travelling for your workplace, you want to arrive fresh and have some perks which makes you desire the business class of the plane. Someone in accounting always believes the flights are overpriced and the company needs to save costs and find the least expensive flight.
According to an article by Reuters, a survey from American Express Global Business Travel says airfares are expected to increase in 2023 amid higher fuel prices, labor and aircraft shortages.
The biggest gains are economy class on routes between Australia and Asia.
The cost of economy class within North America will rise by a more muted 3% and within Europe by 5.5% as capacity cuts during the pandemic are restored.
Flights between Asia and Europe are taking longer because of the sanctions on Russia which means the planes avoid Russian airspace. On a trip between London and Tokyo, the flying time is 2 1/2 hours and 20% increase in fuel burnt.
Amex GBT said global capacity in 2023 was expected to recover to 92% of 2019 levels.
Airlines group IATA forecast that carriers would post an industrywide profit next year partly due to rising fares.
Linking to dividend paying stocks, the pandemic brought commerce to a halt in the hospitality and travel businesses, and they are recovering and can be profitable next year. The point is the lag time, governments have their agenda, businesses have to adapt but there tends to be lag times. if the government and your timeframe do not add up, you should find alternatives till your investment agenda and the governments are at least on the same page.
There are more questions than answers, till next time – to raising questions.