Aviation execs worry about demand as post-pandemic honeymoon ends

The outlook for airlines has darkened as the post-pandemic boom in travel wears off and recession looms, with carriers focused on Britain particularly exposed, industry executives warned on Monday. The CE of transatlantic-focused Virgin Atlantic said 2023 would be "tough", while Heathrow Airport's boss said airlines were increasingly worried about the demand outlook, and the head of global industry body IATA warned about the impact of the downturn on Britain. Most European airlines posted soaring profits this northern hemisphere summer as people took advantage of the first travel season without COVID-19 restrictions for three years. But with inflation soaring and mortgage rates rising, disposable income is set to plunge, and analysts have asked how long the boom can last. Shai Weiss, the chief executive of Virgin Atlantic, said he was bracing for next year after the company beat its forecasts for 2022. "It's going to be a tough 2023. We need, of course, the price of energy to come down and people's lives to be a bit better with inflation tamed," Weiss told an industry conference. Heathrow CEO John Holland-Kaye said that the aviation industry's focus was shifting from the recovery from COVID-19 to worrying about the global economy. "Airlines are concerned about the nature of demand," he told reporters on the sidelines of the conference.<br/>