Even though airline ticket prices are on the rise, cheap airplane tickets, discount hotel rooms, and cheap vacation packages remain plentiful, particularly when you take inflation into account. With the world airline industry now forecasted to make a profit of $2.5 billion in 10, according to the IATA (the International Air Transport Association), airlines are looking to restore much of the capacity they cut during the last two years, resulting in more seats going on sale and a wider choice of flight options on many routes.
The growing improvement in airline ticket sales is being led by business travel. Business travel, particularly bookings in international first and business class fell as much as 25 percent in May of 09 vs. the prior year. The deepest drop for international economy class in 09 was in March when it dropped 10 percent. Last year business and first class cabins were often relatively empty.
Some travel experts feared that new travel policies adopted by cost-conscious companies which pushed business travelers into economy seats in 09 would become the new norm for business travel going forward. Given the rapid rise in first and business class sales this year it appears that company restrictions on these more expensive seats were only a temporary measure in response to the recession.
Although world travel is growing, growth varies widely by region. Asia and the Middle East are experiencing the greatest spurt in sales, with passenger traffic expected to be up over 16 percent and almost 20 percent respectively in 2010. North American air traffic is expected to increase over 8 percent. North American airlines are forecasted to generate profits of $1.9 billion, equal to 76 percent of the worlds airline industry projected profit.
North American airlines have been helped not only by the economic recovery, but also by their capacity cuts and the cost savings that followed over the past two years.
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