Pent-up winter travel demand to continue to fuel airline recovery

Pent-up winter travel demand will continue to fuel the airline industry recovery, a new analyst report says, as Canadians get set to travel to sun destinations despite higher prices and recession concerns. National Bank Financial analyst Cameron Doerksen wrote in a research note released this week that early signs from airline and tour operators show that winter travel demand is strong, with both bookings and pricing to sun destinations running ahead of pre-pandemic levels. "Early indications from industry participants point to demand and pricing being strong this winter, despite consumers being pressured by high inflation and concerns over the macroeconomic backdrop," Doerksen wrote. "With the pandemic now in the rearview mirror, we believe that the pent-up demand will be a significant tailwind for Canadian airlines over the winter, especially in sun destination markets." Doerksen says the main impediment for sun destination travel over the last two years has been pandemic-related travel restrictions. With nearly all travel curbs removed (proof of vaccination is still required in the United States and in Turks and Caicos) demand is expected to return. "For many Canadian travellers, what was once an annual sun vacation has been absent for three consecutive winters. We therefore see significant pent-up demand for sun vacations for the winter of 2022-2023," Doerksen noted.<br/>