3 positive facts From CIBC Transportation & Aerospece weekly
1.- IATA Survey Results Suggest Confidence In Returning To Air Travel IATA published the results from its poll of recent travellers.
We summarize the key findings below which continue to point to pent up demand for travel as vaccination efforts progress.
On Future Travel Trends:
- Fifty-seven percent expect to be travelling within two months of the pandemic being contained (improved from 49% in September 2020),
- Seventy-two percent want to travel to see family and friends as soon as possible (improved from 62% in September 2020),
- Fifty-six percent believe that they will postpone travel until the economy stabilizes (improved from 65% in September 2020.
On Travel Restrictions:
- Eighty-eight percent believe that there should be a balance between managing risks and getting economy open,
- Eighty-five percent believe that governments should set targets to re-open borders,
- Eighty-four percent believe that COVID-19 will not disappear, and we need to manage the risks while living and travelling normally
2.- Scheduled Air Passenger Capacity Flat W/W But OAG Optimistic For May Capacity
Global scheduled airline capacity saw an 1% W/W increase in the week ending March 8 with ~800,000 seats added to the system. Global scheduled capacity remains at 54% of prepandemic levels. OAG noted that North American region gained ~1MM seats in the week with almost all of it within the domestic market. Currently in the U.S., over 90% of capacity on offer is within the domestic market. This is not a surprise given the expectations that domestic and VFR travel will lead the recovery of the industry
3.- U.S. Air Passenger Traffic Up 12% W/W:
The weekly total of U.S. airline passengers continues its upward trend, up ~12% W/W on account of the beginning of spring break in the region. The seven-day rolling average of U.S. air passengers on March 12 came in at 1,098,608 versus 974,799 the week prior (March 5). U.S. traffic was down ~45%Y/Y this week, compared to down ~55%Y/Y the week prior. The easing of lockdown restrictions in several states is also driving increased air traffic demand.