Airfares set to moderate in economy cabin at least, CEOs say

After more than a year of eye-watering airfares post-Covid, there’s some good news for fliers this summer, at least for those traveling in economy — prices aren’t expected to go any higher and in fact may moderate. That was the assessment of many airline chief executives gathered in Dubai this week for IATA’s annual meeting. Several singled out the UK as one place where demand is looking particularly weak. Upcoming elections around Europe may also be suppressing people’s desire to spend on travel, they said, as economic uncertainties weigh on consumer sentiment. “In the UK, specifically in economy class, we’re seeing a bit less robust demand but a strong summer overall,” Virgin Atlantic Airways Ltd. Chief Executive Officer Shai Weiss said. “That tells us there’s a bifurcation of prospects for individuals.” Ryanair Holdings Plc’s Michael O’Leary was one of the first to sound the alarm about softer fares last month, predicting they’d hold steady into summer even with aircraft in short supply, challenging the accepted wisdom that a lack of supply always means higher prices. United Airlines Holdings Inc. CEO Scott Kirby on Monday described the picture right now as “steady as she goes” with demand holding but not increasing, while Emirates President Tim Clark said despite strong demand going into summer, prices are “very much at an equilibrium.” IATA DG Willie Walsh said the chance of political change in Europe was one reason people may be less inclined to travel. The UK goes to the polls on July 4 and the European Parliament holds its elections in the coming days. “With economy class fares I’ve heard a number of CEOs say pricing is a bit softer, particularly in the leisure market,” said Walsh. “It’s interesting, when I think back to my time as a CEO, this was often influenced by elections.” Walsh oversaw the merger of British Airways and Iberia that formed IAG in 2011.<br/>