Pre-pandemic, those routes accounted for more than 26 percent of IAG’s revenues and over 24 percent of Lufthansa’s, according to Bernstein analyst estimates.
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That means the full transatlantic restart might not be as lucrative as airlines would hope.Įurope-based carriers tend to be more reliant on transatlantic revenues than their US competitors. One British FTSE 100-listed company, which did not want to be named, said it planned to reduce travel for internal meetings next year by two-thirds on 2019 levels, and by one-third for external meetings. US spending on corporate travel is expected to reach only 25-35 percent of 2019 levels by the fourth quarter of 2021, and 65-80 percent a year later, according to a Deloitte survey of 150 travel managers. Most experts believe that corporate travel will lag the recovery in leisure travel. Grounded British Airways planes sit on the tarmac at Heathrow airport Terminal 5 in West London, Sept 9, 2019. “USA, here we come,” said Kinsella, who already has his tickets booked. The United States will allow fully-vaccinated Britons and Europeans to enter from Monday, fully re-opening to two-way traffic for the first time since the pandemic started.
“In my experience of the USA, it’s a people market - deals get done face to face, with a handshake and looking into each other’s eyes,” Tony Kinsella, chief executive of UK-based materials development and testing company Lucideon, said.ĪLSO READ: Tougher EU airport slot rules trigger Asia retaliation threat “We are in a relationship business and travelling is necessary to meet clients, to win deals,” said Anthony Diamandakis, Citi’s co-global head of Global Asset Managers.įor smaller, non-financial businesses too, travel is essential for trade. Some travellers are desperate to get back over the pond. Question marks remain over the pace and extent of the return of corporate travel budgets, after the pandemic showed online calls and virtual meetings offered a workable alternative That’s bad news for the likes of British Airways parent company IAG and Germany’s Lufthansa, whose profits have in the past been buoyed by corporates spending more by booking closer to departure and flying at more convenient times. Question marks remain over the pace and extent of the return of corporate travel budgets, after the pandemic showed online calls and virtual meetings offered a workable alternative. The real battle of the transatlantic, the world’s most lucrative travel market, takes place at the front of the plane, in first, business, and premium economy class, where those paying the top prices help drive airline profits. LONDON/CHICAGO - Planes will fill the skies above the North Atlantic again from Monday, a boon for airlines after 19 months of restrictions, but that alone won’t be enough for carriers whose profits depend on filling the most expensive seats. In this file photo taken on June 03, 202, passengers push their luggage on arrival in Terminal 5 at Heathrow airport in London.