2024 foreseen as promising for airlines & Canadian travel despite economic factors. Positive outlook prevails for air travel. (BNN Bloomberg)


December 30, 2023

Despite economic uncertainties, a positive outlook prevails among airlines and travel experts concerning Canadians' air travel in 2024.

According to a recent International Air Transport Association (IATA) report, global air travel is anticipated to soar in 2024, surpassing the previous record set in 2019 with an estimated 4.7 billion passengers taking to the skies. However, despite this surge in travelers, the IATA foresees a marginal 2.7% profit margin for the airline industry.

Willie Walsh, IATA's director general, expressed admiration for aviation's resilience amid significant losses in recent years. He highlighted the industry's return to pre-pandemic levels of connectivity and the remarkable speed of recovery.

This upbeat sentiment resonates at Porter Airlines, which aggressively expanded in 2023 following the acquisition of 50 new Embraer E195-E2 jets to broaden its network. Despite economic pressures from inflation, Porter CEO Michael Deluce reported robust demand for bookings in the coming year, signaling a persistent strong demand environment.

Similarly, Play Airlines, a new player in the Canadian market, experienced success since its June launch, operating flights out of Hamilton to Europe via Reykjavík. CEO Birgir Jónsson highlighted the Canadian market's need for alternative European travel options and anticipated significant growth in 2024 and 2025.

Personal finance expert Clay Jarvis from NerdWallet Canada anticipated sustained substantial spending on travel by Canadians in 2024. He emphasized that the trajectory would depend on factors like inflation and interest rates. Despite the Bank of Canada's interest rate hikes, their impact on the economy has yet to materialize, possibly influencing travel spending in the future.

Jarvis expressed concerns about potential limitations on travel options due to price pressures and speculated that Canadians might opt to stay within Canada if travel choices are constrained. Additionally, he pondered whether Canadians might prioritize paying off accumulated debt over travel spending if interest rates decline.

The overall sentiment reflects positivity for air travel in 2024, despite considerations about economic factors like inflation and interest rates influencing consumer behavior and travel spending choices.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

You may also like

31-Year-Old Seeks Stock Ideas for $200K Inheritance: Top Picks

A 31-year-old investor recently turned to Reddit’s r/Investing community for advice on how to invest $200,000 inherited through an IRA....

TD Bank’s Stock Gains as Analyst Predicts Recovery

Toronto-Dominion Bank (TD) received a much-needed boost as Jefferies Financial Group upgraded its stock to a "buy" rating, raising its....

U.S. Regulator Flags More Banks Amid Profit Dip

The U.S. banking sector faced a mixed third quarter as the Federal Deposit Insurance Corporation (FDIC) flagged two more banks....

Bank of Canada Cuts Key Interest Rate to 3.25% to Boost Growth

The Bank of Canada has lowered its policy interest rate by 50 basis points, bringing it down to 3.25%. This....

Asian Stocks Rally as US Inflation Fuels Fed Rate Cut Hopes

Asian stock markets surged on Thursday, recovering from recent losses, after U.S. inflation data bolstered confidence in an upcoming Federal....

Trump Family Joins Bitcoin Boom at Gulf Crypto Conference

A Crypto Spectacle in the GulfThe Trump family and their allies are set to make waves in the cryptocurrency world....

Ripple’s XRP Eyes Bullish Revival After RLUSD Approval

Ripple’s XRP could regain its upward momentum after receiving a significant boost from the New York Department of Financial Services....

Crypto Market Buzz: Traders Eye Next Week's Potential

The crypto market is buzzing with activity as traders eagerly look ahead to next week. While Bitcoin’s progress seems to....

XRP Price Could Hit $100 by 2025: Here's Why

XRP, the cryptocurrency created by Ripple Labs, has been lagging in recent years, but recent developments suggest that things are....

Asian stocks slide, Korean index falls 2.5% after Wall St hits records

BANGKOK — Stock markets in Asia mostly declined on Monday, with South Korea's benchmark index falling 2.3%, following a strong....

Prospect Capital Downgraded to Junk by S&P Amid Loss Concerns

S&P Global Ratings has downgraded Prospect Capital Corporation’s private credit fund to junk status, assigning it a BB+ rating. The....

ECB Prepares for Faster Rate Cuts to Boost Economy

The European Central Bank (ECB) is gearing up to slash interest rates at a quicker pace in an effort to....