International Business: Pent-up demand prompts European travel recovery – Gulf Digital News

International Business: Pent-up demand prompts European travel recovery – Gulf Digital News

LONDON: European airlines and hotel chains are seeing bookings recover to levels barely seen since the start of the Covid-19 pandemic, led by demand for shorter trips, although long-distance travel remains on the ropes.

The pandemic led to international travel virtually shutting down as governments around the world curbed entry. However, the easing of curbs and bottled-up travel demand have led to an abrupt upswing in short- and medium-haul trips.

“There is a lot of pent-up demand. People want to see their families and travel again,” said Phil Seymour, president of IBA Group, a UK-based consultancy and aircraft valuation firm.

That echoes soaring domestic demand in the US.

“The big overlay is that air travel demand is back and it is back in a massive way,” Sean Egan, chief executive of the Egan-Jones Ratings Company, told the Airfinance Journal conference.

Challenges remain in the form of rising costs and staff shortages causing flights to be cancelled. Some airlines have promised more than they can deliver this summer, delegates warned. Even so, airlines expect a return to profitability.

British Airways-owner IAG expects to be profitable from the second quarter onwards and for the year as a whole, it said yesterday. That’s despite having to cut capacity in