Airlines are looking east for their next major income source. Yes, the Far East.
Carriers expect Asia to meet travel demand next. Airlines are increasing Asia-Pacific routes to enhance 2024 profitability.
The Global Business Travel Association predicts a 41% increase in Asia-Pacific travel to $567 billion this year and $800 billion by 2027. That includes Air Canada and U.S. domestic flights.
American Airlines wants to be the first U.S. carrier to fly nonstop from New York to Tokyo.
Cirium predicts a 79% increase in flights to Asia in the first three months of 2024 compared to 2019, the year before the epidemic. The reintroduction of long-haul flights may boost airline profits.
At a conference earlier this month, United's chief commercial officer, Andrew Nocella, said that the US market is more mature. "The growth rates of seven percent or eight percent or nine per cent for the industry are just not going to be possible, but growing overseas, we believe there's just a lot more opportunity."
Delta Air Lines will boost Asia capacity by 50% between December and 2024. United Airlines promised to increase Asia capacity. Flights to New Zealand and the Philippines. Air Canada said adding Asian capacity will roughly treble system growth in 2024.
"I feel like Asia-Pacific is six-to-12 months behind what you've seen on the transatlantic – China being the wild card in all this," remarked.