In travel news for May 17th, 2023 we take a look at current Air Travel demand.
A recent Bank of America analysis revealed a significant decline in consumer demand for Air Travel in April, as indicated by credit card spending data. The Airline Reporting Corporation (ARC) data also suggests a moderation in airline ticket sales, raising concerns for the travel industry.
The May 10 Consumer Checkpoint newsletter from Bank of America highlighted a substantial decrease in airline-related expenditures as the primary factor in the broader slowdown of consumer spending on service sector items. In April, per-household airline expenditures only increased by 0.9% compared to 2022. This figure represents a 4.5 percentage point drop in year-over-year growth from March.
Airline Reporting Corporation (ARC) data on Air Travel sales supports the trend of softening demand over the past four weeks. For the seven days ending May 14, sales volume in dollars increased by 4.4% compared to 2022 levels, and the total number of tickets sold was up by 5%. These numbers show a significant decline from just a few weeks prior. For the seven days ending April 23, sales volume exceeded 2022 levels by 12%, and the total number of ticket sales was 7.8% higher than the previous year.
Despite the data, airlines have maintained an optimistic outlook on demand. During last month's earnings reports, carriers expressed confidence in the continued high demand for travel throughout the summer months. As the situation develops, travelers and industry professionals alike will be keeping a close eye on the trends shaping the future of Air Travel.
