Lagging business travel takes shine off transatlantic restart

Planes poured across the North Atlantic towards the United States on Monday, a boon for airlines after 19 months of travel restrictions - but that alone won’t be enough for carriers whose profits depend on filling the most expensive seats. Experts say the real battle of the transatlantic, the world’s most lucrative travel market, takes place at the front of the plane, in first, business, and premium economy class, where those paying the top prices help drive airline profits. Question marks remain over the pace and extent of the return of corporate travel budgets, after the pandemic showed online calls and virtual meetings offered a workable alternative. That’s mixed news for the likes of IAG and Lufthansa, whose profits have in the past been buoyed by corporates spending more by booking closer to departure and flying at more convenient times. Most experts believe that corporate travel will lag the recovery in leisure travel. US spending on corporate travel is expected to reach only 25%–35% of 2019 levels by Q4 2021, and 65%–80% a year later, according to a Deloitte survey of 150 travel managers.<br/>