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CTV News
2 days ago
- Business
- CTV News
Transatlantic airfares slump as Western Europeans skip U.S. travel
NEW YORK/LONDON — Airfares from Europe to the United States have dropped to rates not seen since before the pandemic, as travelers from Western Europe lead a pullback in travel to the U.S. that is expected to continue through at least July. Overseas arrivals to the United States fell 2.8 per cent in May from a year ago, according to preliminary data from the U.S. National Travel and Tourism Office within the U.S. Department of Commerce. Travel from Western Europe fell 4.4 per cent in May although travel from Eastern Europe rose 4.6 per cent in the same period. Forward bookings suggest sustained declines are on the horizon, with total inbound bookings to the U.S. in July down 13 per cent year-over-year, according to OAG Aviation, an analytics firm. Transatlantic airfare has been declining since the first quarter when Europeans started reconsidering travel to the U.S. after President Donald Trump suggested annexing Greenland, launched a global trade war, and issued orders that focus on stricter border policy. A stronger dollar has also deterred some trips. In March, travel from Western Europe fell 17 per cent year-over-year, according to the NTTO. Average round-trip economy airfares for over 50 routes from the U.S. to Europe in the first quarter were down an average of 7 per cent year-over-year, with rates to fly between Atlanta, Georgia, and London, down 55 per cent, according to data from Cirium, an aviation analytics firm. As American consumers have been bargain-hunting and waiting closer to their departure dates to finalize travel plans, the decline in demand from Europe is another factor contributing to cheaper travel. 'Fewer seats filled by European travelers to the U.S., and a slower pace of growth in U.S. outbound to Europe than last year, will tend to cast 2025 as a tougher year to make money on transatlantic routes,' said Aran Ryan, director of industry studies at Tourism Economics, a subsidiary of Oxford Economics. This summer, the price of round-trip tickets from the U.S. to Europe is down 10 per cent compared with a year ago, travel booking app Hopper said. Average fares of US$817 per ticket are in line with prices to Europe in the summer of 2019 before the pandemic. Major carriers, including Air France KLM and Germany-based Lufthansa, expect slowing activity. Lufthansa CEO Carsten Spohr said the company expects weaker demand in the third quarter, while Air France KLM CEO Ben Smith said the company is seeing a 'slight pullback' in transatlantic traffic and will slash prices to keep cabins on its transatlantic flights full. Airlines including Lufthansa and U.S. air carrier United Airlines UAL.O say higher demand from U.S. travelers flying to Europe is offsetting the decline of Europeans flying the opposite direction. United said international bookings from Europe fell 6 per cent in the first quarter but added that U.S.-originating demand made up for the pullback. Rival Delta Air Lines DAL.N said 80 per cent of its long-haul international demand originates from the U.S., and fares in the region are 'significantly higher' than in the rest of the world. Lufthansa said it plans to market its transatlantic flights to more Americans given the higher demand, despite travel from Western Europe showing moments of recovery. Travel from the region to the U.S. increased 12.1 per cent in April before falling again in May, according to data from the NTTO. As of mid-May, there are 4.3% per cent more international flights scheduled to depart from U.S. airports for international destinations this summer, said Hopper. 'We feel really good about the transatlantic market,' American Airlines CFO Devon May said at a Wolfe Research transportation and industrials conference in May. (Reporting by Doyinsola Oladipo in New York. Editing by Rod Nickel)
Reuters
3 days ago
- Business
- Reuters
Transatlantic airfares slump as Western Europeans skip US travel
NEW YORK/LONDON, June 18 (Reuters) - Airfares from Europe to the United States have dropped to rates not seen since before the pandemic, as travelers from Western Europe lead a pullback in travel to the U.S. that is expected to continue through at least July. Overseas arrivals to the United States fell 2.8% in May from a year ago, according to preliminary data from the U.S. National Travel and Tourism Office within the U.S. Department of Commerce. Travel from Western Europe fell 4.4% in May although travel from Eastern Europe rose 4.6% in the same period. Forward bookings suggest sustained declines are on the horizon, with total inbound bookings to the U.S. in July down 13% year-over-year, according to OAG Aviation, an analytics firm. Transatlantic airfare has been declining since the first quarter when Europeans started reconsidering travel to the U.S. after President Donald Trump suggested annexing Greenland, launched a global trade war, and issued orders that focus on stricter border policy. A stronger dollar has also deterred some trips. In March, travel from Western Europe fell 17% year-over-year, according to the NTTO. Average round-trip economy airfares for over 50 routes from the U.S. to Europe in the first quarter were down an average of 7% year-over-year, with rates to fly between Atlanta, Georgia, and London, down 55%, according to data from Cirium, an aviation analytics firm. As American consumers have been bargain-hunting and waiting closer to their departure dates to finalize travel plans, the decline in demand from Europe is another factor contributing to cheaper travel. "Fewer seats filled by European travelers to the U.S., and a slower pace of growth in U.S. outbound to Europe than last year, will tend to cast 2025 as a tougher year to make money on transatlantic routes," said Aran Ryan, director of industry studies at Tourism Economics, a subsidiary of Oxford Economics. This summer, the price of round-trip tickets from the U.S. to Europe is down 10% compared with a year ago, travel booking app Hopper said. Average fares of $817 per ticket are in line with prices to Europe in the summer of 2019 before the pandemic. Major carriers, including Air France KLM ( opens new tab and Germany-based Lufthansa ( opens new tab, expect slowing activity. Lufthansa CEO Carsten Spohr said the company expects weaker demand in the third quarter, while Air France KLM CEO Ben Smith said the company is seeing a "slight pullback" in transatlantic traffic and will slash prices to keep cabins on its transatlantic flights full. Airlines including Lufthansa and U.S. air carrier United Airlines (UAL.O), opens new tab say higher demand from U.S. travelers flying to Europe is offsetting the decline of Europeans flying the opposite direction. United said international bookings from Europe fell 6% in the first quarter, but added that U.S.-originating demand made up for the pullback. Rival Delta Air Lines (DAL.N), opens new tab said 80% of its long-haul international demand originates from the U.S., and fares in the region are "significantly higher" than in the rest of the world. Lufthansa said it plans to market its transatlantic flights to more Americans given the higher demand, despite travel from Western Europe showing moments of recovery. Travel from the region to the U.S. increased 12.1% in April before falling again in May, according to data from the NTTO. As of mid-May, there are 4.3% more international flights scheduled to depart from U.S. airports for international destinations this summer, said Hopper. "We feel really good about the transatlantic market," American Airlines CFO Devon May said at a Wolfe Research transportation and industrials conference in May.
Daily Mirror
3 days ago
- Business
- Daily Mirror
Brits ditch Spain and Portugal for scorching countries with cheaper breaks
Experts say many people are being drawn to the North African region by its wide availability of high-quality hotels costing considerably less than similar properties in locations such as Spain, France and Italy A surge in UK holidaymakers are swapping traditional European destinations for North Africa, according to travel firms. Experts suggest the region's appeal lies in its abundance of high-quality hotels that are significantly cheaper than similar properties in Spain, France and Italy. Egypt, Morocco and Tunisia are all seeing an influx of visitors from the UK. Data from aviation analysts Cirium reveals that 19,847 flights are expected to serve routes from UK airports to these countries this year, more than double the 8,653 flights in 2019. In contrast, the number of flights to Spain and Portugal is predicted to rise by 10% and 9% respectively over the same period. This indicates that many holidaymakers seeking better quality accommodation without paying more are willing to endure a longer flight, despite airlines like easyJet and Ryanair offering non-reclining seats and no onboard entertainment. Flights from Gatwick airport in West Sussex to Egypt's Sharm el-Sheikh take approximately five hours and 20 minutes. This means an additional hour and 45 minutes on a plane compared to trips to the traditional southern Spanish hotspot of Alicante. EasyJet commenced flights between Gatwick and Cape Verde, off the west coast of Africa, in March, marking its longest route serving England. These flights cover the distance of 2,332 nautical miles in six hours and 10 minutes. Tui, the travel company, has reported a 30% increase in bookings for summer holidays in Egypt compared to last year, from both flight-only and package holiday customers. The firm also noted "double-digit growth" for Tunisia and a strong demand for Morocco. Chris Logan, Tui's UK commercial director, stated that these three destinations offer "fantastic value for money", making it difficult for traditional European destinations to compete. Speaking to the PA news agency, he said: "There's good quality accommodation and great weather beyond the traditional summer season. "Even in the winter months temperatures are mild, making them a perfect choice for year-round travel." To meet the growing demand, Tui has increased its flights from the UK to North Africa this summer, introducing new routes from Stansted to Enfidha in Tunisia and from Newcastle to Agadir, Morocco. the online accommodation marketplace, reported a 68% increase in searches for summer breaks in Tunisia during the first five months of this year, compared with the same period in 2024. Egypt and Morocco saw increases of 64% and 39% respectively. Nicki Tempest-Mitchell, managing director at Barrhead Travel, commented that Morocco, Egypt and Tunisia offer "incredible value for money" which is "proving increasingly attractive for holidaymakers this year". She added: "The investment in high-quality hotels and experiences across these regions is turning the heads of customers who may previously have favoured mainland Europe." According to Julia Lo Bue-Said, chief executive of Advantage Travel Partnership, "Although favourites such as Spain and Turkey are still our top-selling destinations, it's safe to say north Africa is a region to watch over the next few years." She observed a "clear trend toward value-conscious holiday planning", attributing this to the ongoing cost of living pressures and reduced disposable incomes. Lo Bue-Said noted: "This shift has driven growing popularity for destinations like Morocco, Egypt and Tunisia, which offer more competitive pricing and high-quality accommodation options compared to the more traditional western Mediterranean resorts."
Reuters
4 days ago
- Business
- Reuters
Airbus nearing deal for 100 A321 aircraft with VietJet, sources say
PARIS, June 17 (Reuters) - Airbus ( opens new tab was closing in on an order for 100 single-aisle aircraft from VietJet ( opens new tab on Tuesday, with an announcement pencilled in for the Paris Airshow barring a last-minute setback in negotiations, industry sources said. Airbus declined to comment and VietJet was not immediately reachable at the air show, where airline staff were witnessed preparing for a possible announcement. The sources said the low-cost Vietnamese airline was looking to buy the A321neo model. A deal for 100 such planes could be worth around $6.3 billion, according to estimated prices provided by analysts Cirium Ascend. Bloomberg was first to report the potential deal. European planemaker Airbus has announced a flurry of deals at the Paris Airshow, the world's biggest aviation trade fair that opened on Monday. U.S. rival Boeing (BA.N), opens new tab is expected to have a more subdued show as it focuses on the probe into last week's fatal crash of an Air India Boeing 787 and after it racked up huge deals during U.S. President Donald Trump's recent tour of the Middle East. VietJet, the largest airline in Vietnam, operates an all-Airbus fleet, apart from two Chinese-made regional jets. The airline has not to date taken delivery of any of the around 200 MAX planes it has ordered from Boeing. Airbus is the main supplier of jets to Vietnam, with its aircraft making up 86% of the planes currently operated by Vietnamese airlines. However, export-dependent Vietnam is under pressure from Washington to buy more U.S. goods.
Arabian Post
7 days ago
- Business
- Arabian Post
Airspace Shutdown Hits Airlines Amid Israel‑Iran Strikes
Arabian Post Staff -Dubai Over 1,800 flights have been disrupted and more than 650 cancelled after Israel's airstrikes on Iran prompted sweeping airspace closures over Israel, Iran, Iraq, Jordan, and Syria, prompting carriers worldwide to reroute or suspend services. Tel Aviv's Ben Gurion Airport remains closed indefinitely, while Iran's state media confirmed grounding all flights. The European Union's aviation safety agency has classified the region as a high-risk zone. Flight-tracking platforms like Flightradar24 and Cirium recorded a sudden clearance of air traffic in the affected region. Planes were diverted south via Egypt and Saudi Arabia or north through Turkey, Azerbaijan, and Central Asia. Airlines such as Emirates, Qatar Airways, Etihad, Air India, Lufthansa, British Airways, Delta, United, and El Al have either cancelled or dequeued flights due to safety concerns. ADVERTISEMENT El Al announced suspension of all inbound and outbound operations, evacuating its fleet from Israel. Its budget counterpart, Israir, has similarly withdrawn aircraft from Tel Aviv, with full suspension through to at least 15 June. On the US side, United suspended its Newark–Tel Aviv service until 30 June, and Delta halted routes from JFK through 31 August. In Europe, national carriers tightened flight operations. Lufthansa extended cancellations to Tel Aviv and Tehran through July, and halted flights to Amman and Beirut until 20 June. KLM, SWISS, Aegean, Ryanair, and EasyJet collectively cancelled flights into Israel, some as late as October. Turkish Airlines, Flydubai, Pegasus, and AJet suspended routes to Iran, Iraq, Jordan, and Syria until mid‑June. The flight disruptions are exacting a toll on airlines' financial performance. US carriers Delta, United and American saw share prices fall between 3.5% and 5%, while the US Global JETS ETF dropped around 3.5%. Rising oil prices—spiking between 7% and 11%—have compounded the burden. Investor sentiment across transatlantic carriers remains cautious as volatility in the Middle East continues to unsettle markets. Aviation risk consultancy Osprey Flight Solutions reports six commercial aircraft have been shot down unintentionally, with three near-miss incidents since 2001, including downed civilian jets in Kazakhstan and Sudan. Such events have heightened the emphasis on airspace risk assessment in conflict zones. International Air Transport Association Director‑General Willie Walsh stressed the need for more coordinated information sharing between states, airlines, and global flight advisory systems. Operation Rising Lion, the designation given to Israel's offensive, involved over 200 fighter jets striking more than 100 Iranian targets—including nuclear enrichment sites at Natanz, ballistic missile facilities, and senior military commanders. Iran retaliated with missile and drone strikes, although most were intercepted. The escalation has forced Israel to place its defence units on high alert for further retaliation. Operationally, airlines have adapted fast. Air India rerouted 12–16 flights—spanning transatlantic and Europe‑India services—via Vienna, Frankfurt and other hubs. Emirates diverted flights from Manchester to Istanbul, and Flydubai rerouted services from Belgrade to Yerevan. Abu Dhabi's airports issued advisories urging passengers to verify status before travelling, as disruptions are expected to persist through the weekend. The widespread closure underscores the commercial aviation sector's exposure to geopolitical volatility. As routes are restructured to avoid conflict zones, carriers face longer routings, elevated fuel costs, crew redeployments, and cancellations—all eroding profit margins already weakened by post‑pandemic recovery strains. Safety remains paramount. While no civilian aircraft have been lost in the current hostilities, the track record of past downings amplifies concerns. Airlines now rely heavily on real‑time risk intelligence from platforms like OPSGROUP's Safe Airspace and coordination with aviation authorities. Russia's Rosaviatsia has also barred its carriers from the contested airspace and banned flights to Iran and Israel until at least 26 June. Global aviation authorities now face calls to bolster measures: real‑time intelligence sharing, harmonised flight advisories, and contingency routing to maintain safety while minimising disruption. But as long as the Israel‑Iran confrontation rages, the skies remain fragile. Passengers worldwide are urged to monitor airline communications and government travel advisories as the situation remains highly fluid.
