The latest IATA study shows that European carriers are down 3.6% in traffic compared to 2019, reflecting a slower airfare increase than inflation growth.
Europeans are still traveling as much, despite the inflationary context. In June, the average airfare in Europe increased by around 16% compared to pre-pandemic levels. However, this figure is still lower than the EU's average consumer price index, which in June was 20% higher than before the pandemic. European air transport is recovering strongly and is expected to surpass 2019 by 2024.
The European air transport market's competitiveness helped keep airfare inflation at 16%, four percentage points below the increases recorded by the general consumer price index. This is a significant achievement, given the extreme volatility of jet fuel prices and labor wage increases. It stands in contrast to the ongoing rate increases imposed by our suppliers. Despite this summer's disruptions, the UK's CAA recently approved a 56% increase in fares at London Heathrow. In addition, it approved a 26% increase for Nats, the UK's air navigation service provider.
Amsterdam's Schiphol Airport has implemented a 37% increase in the Netherlands, despite facing many problems.
The European air transport market is recovering, leading to even more challenging market conditions. As a result, consumers will now have more options to choose from in terms of routes and airlines.
In the previous year, 20 new airlines were established in Europe. This is significant because a more competitive air transport market will make Europe an even more competitive place to conduct business.