Despite international conflicts and soaring fuel prices, the travel industry remains resilient
Representatives of three airlines that carry large numbers of Canadians say the travel industry is weathering obstacles that have surfaced during ongoing international conflicts.
Ana Paula De Souza, Air Canada’s director of sales Canada and global accounts, told travel agents attending Tuesday’s Lufthansa Group Travel Forum in Toronto that the industry is having to contend with the likes of fuel prices that have soared as a result of the Iran war but that hasn’t led to a dramatic drop in the number of people wanting to explore the world.
“We do see travel continue to be resilient,” De Souza told the gathering.
De Souza added that Air Canada – which has suspended service to Tel Aviv and Dubai because of regional fighting – is shifting capacity to destinations where there is strong demand.
But John Holt, director of global corporate sales for United Airlines, said the Iran war – which has led to a spike in petroleum prices – has meant the United is “seeing a big hit on fuel.”
Higher fuel prices have translated into higher ticket prices for airline passengers, with low-cost carriers seen as particularly vulnerable to rising fuel prices.
“There’s nothing we can do about it,” Holt said. “It’s the way of the world right now.”
However, Christina Meakin, who oversees sales for Lufthansa in this country, said, “Canadians still love to travel,” although there has been a shift in our travel patterns, with Europe proving increasingly popular, something she expects to “continue for the time being.”
Canada is a growing market for Lufthansa, which now has 5 Canadian gateways and hopes to add others.
Edelweiss, a Switzerland-based Lufthansa Group member, plans to start Halifax service in June and then add Calgary and Vancouver to its network, she reported.
Meakin added that Lufthansa is now introducing Wifi provider Starlink to its planes, with Meakin labelling it a “gamechanger in terms of Wifi.”
Meanwhile, Holt told the gathering that Premium leisure service is proving particularly popular for United, with the airline having opted for more Premium seats, while the number of economy seats is falling.
He noted that lounges that serve United passengers have also built a strong following. Meakin added that Lufthansa is investing in lounges, while De Souza stated that Air Canada clients are “prioritizing experiences.”
