Sign of recovery for US business travellers

Michael Bond

Although it is quite early in the day to say that there is a recovery happening in the business class travel sector, some US airlines have reported a slight increase in demand throughout the past week. The business traveller is a key factor in the airline industry as they amount for a hefty amount of the carrier’s profit margin. As well as having the upgraded seats they tend to spend more on ancillaries while in flight. The airlines involved in a return to form have been quick to post figures, but experts are warning them not to get too excited yet.

The reason for the increase could be down to some deals being offered by airlines to encourage business passengers back on to planes. Reduced fares and two-for-the-price-of-one deals have helped ease some back into flying, but most businesses are still very cautious about spending needlessly. Some of the airlines have been playing with their savings a little this past year offering such low prices, which are normally the bread and butter of their business. Fuel prices have been up and down since 2008 and have been slowly creeping back up this year.

It has been a funny old season in the airline industry across the globe recently. A few major airline crashes, most notably the Air France jet that crashed after leaving Brazil for Paris has put a damper on flying for some. While the major airlines seem to be struggling along, it has been the no-frills carriers that have benefited with more people who want to fly still choosing the cheaper option. This has been noted by some and they are now heading the same route by discounting fares and having extra charges for luggage, this could well be the way forward for the airline industry.