Demand for air travel has normalised after a years-long boom following the Covid-19 pandemic as holidaymakers and travellers baulk at higher fares, executives at major airlines said at the Farnborough Airshow on Monday.
Guliz Ozturk, CEO of Turkey’s low-cost Pegasus Airlines, said the airline expected yields — a measure of average fare paid per mile by each passenger — to be flat.
Travellers are looking for the most cost effective way to travel, she said.
Air India CEO Campbell Wilson said he expected the international market to moderate for the next six months, while the CEO of BA-owner IAG, Luis Gallego, said business travel is still recovering from the Covid crisis when travel almost ground to a halt with borders shut and planes grounded.
The comments come after Ryanair reported earlier on Monday a bigger-than-expected drop in quarterly profit as fares plunged 15 per cent, with management saying that ticket prices were continuing to deteriorate.