Virgin Atlantic boss warns of long-term hit to business travel

Virgin Atlantic’s CE is planning for a long-term reduction in business travel, in one of the clearest warnings yet on the hit to this part of the airline industry once the pandemic ends and people can move freely again. The airline expects corporate travel will be 20% lower over the next two years compared with pre-pandemic levels, with questions over whether business class will ever make a complete recovery, Shai Weiss said. “Will business travel return in the same way? No, I don’t think so. But do I think there will be a return to business travel? Absolutely,” he said. Airlines have reported strong demand for leisure trips when borders open and people can travel, but one of the biggest questions facing the industry is how many lucrative corporate clients will be lost forever to remote working and the successful rollout of video conferencing technology. Weiss believes the majority of people are tired of platforms such as Zoom and Microsoft Teams, but said the industry will inevitably take a hit from the changes to the way people work. Jeffrey Goh, CE of Star Alliance, has told the FT he expects up to a third of trips to disappear, but airlines including Lufthansa and Delta have been more bullish over a snapback in demand once the crisis is over.<br/>