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The year 2024 has definitely confirmed a return above the pre-Covid levels (2019) and the demand for air travel has continued to grow both globally and in our European region. In 2025, the same trend is expected to continue. Airlines are not yet delivering strong financial results (to match the current strong demand), but the outlook for 2025 is positive in this area as well. Air traffic in Europe was complicated in the summer of 2024 in terms of air traffic management, resulting from the increase in intensity over the past year, but we can expect an improvement in this area in 2025 as well, i.e. fewer delayed flights.
Main factors influencing the market
Demand for air travel continues to grow, but airlines face several factors that complicate their operations. There is still a shortage of aircraft due to late deliveries at both Boeing and Airbus. This is not optimal for the development of flight plans, but neither is it optimal for the financial performance of airlines. In Europe, the war conflict in Ukraine is an important factor, which significantly restricts air traffic: most long-haul flights between Europe and Asia have to take longer routes outside the Russian Federation, which complicates and makes an important air transport segment more expensive. It should not be forgotten that the most important cost item in air transport is fuel, which accounts for more than 30% of costs. The development of fuel prices will therefore be a significant factor influencing the pricing of air tickets.