DBEA55AED16C0C92252A6554BC1553B2 Clicky DBEA55AED16C0C92252A6554BC1553B2 Clicky
February 23, 2024
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Like everyone else attached to the commercial aviation business, we have been wishing air travel to show a robust recovery.  It isn’t happening.  At least not yet.

Updating our model this morning note that the volumes are up – but just a bit. The daily volumes peaked (after the collapse) on June 1 at 353,261.  Looking at our 90-day traffic forecast in the chart, we see that that “swoosh” is not happening.  We are off the bottom, but only just.

The US air travel recovery looks anemic and, the slower the recovery is the worse off is the long travel industry funnel.  How the greater travel-related economy gets through this damage will be very hard on nearly 16 million people.  The public policy needed to get people traveling again comes with no easy or cheap options.  And, in the end, it is a public policy issue.  Every company in the travel funnel wants, desperately, to get back to work and keep its people employed.

The implication of the anemic recovery is that US airlines will keep struggling. As the pandemic seems to be waning, economic pressures are probably what is keeping passengers off airplanes. Though quarantines at either end also serves to chill travel interest. The current social unrest is certainly going to add to weak consumer confidence and not help bookings.  Moreover, cheap gas and remote working allows people to consider a road trip rather than flying if they want to “get away”.  And who doesn’t want to “get away” from their home quarantine now? 

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Co-Founder AirInsight. My previous life includes stints at Shell South Africa, CIC Research, and PA Consulting. Got bitten by the aviation bug and ended up an Avgeek. Then the data bug got me, making me a curious Avgeek seeking data-driven logic. Also, I appreciate conversations with smart people from whom I learn so much. Summary: I am very fortunate to work with and converse with great people.

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