This week, the American Express Global Business Travel Forecast 2015 (the “Forecast”) was revealed.
It predicts that air rates will rebound – specifically for long haul rates – in the United Kingdom.
Despite low economic growth across Europe, the UK is recovering with strong country-level financials and expectations for continued growth next year.
The Forecast predicts that airline capacity in the UK will remain constrained as airlines manage inventory as closely as possible, which will continue to drive up prices, potentially especially for corporate travel.
Larger airlines are scheduling international travel from the north through Heathrow more intelligently, allowing for more efficient international trips, such as Manchester – Shanghai and Scotland – South Africa.
Airlines expect that growth in long-haul travel will be a result of optimising route timings, price and aircraft type. Short-haul prices are expected to remain stable or decrease slightly, as a result of low-cost carriers keeping demand in check by maintaining current capacity levels.
“The economic recovery in the UK is a welcome boost to the business travel industry,” said Caroline Strachan, Vice President, Global Business Consulting, EMEA, American Express Global Business Travel, “Although we have been producing the Forecast for over a decade, we’re proud to present our first edition as a stand-alone company.”