CAA says recession lopped 25 per cent off air travel demand

Hotel News - 30/12/2010

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Demand by business travellers for flights fell by almost a quarter in the economic downturn and for short-haul flights, demand is not likely to get back to pre-recession levels. The latest findings come in the latest report issued by the Civil Aviation Authority.

The analysis by the CAA shows international business travel between Britain and other destinations was down by 4.6 per cent for 2008, 22.2 per cent for 2009. In 2010’s first half, demand fell yet further.

The worst hit routes in 2009 were for flights between the European Union and Britain. On those routes, demand dropped by 25 per cent. On routes between North America and Britain, demand dropped by 20 per cent.

For both regions, demand for air travel was hit especially hard by the financial sector crisis. The banking crisis caused a huge decline in business flights by bankers.

The latest numbers show that business travel has again picked up as the world economy recovers. However, despite that slight recovery, the first six months of this year still saw demand down 28 per cent on the same period of 2008. This was not all due to economic factors, however – the volcanic ash cloud closed airspace earlier this year.

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