The CEO of online travel agency FlightHub says demand for air travel may be levelling off after soaring to pre-pandemic levels over the summer. Travellers make their way through Pearson International Airport in Toronto Monday, Nov. 14, 2022. THE CANADIAN PRESS/Cole Burston
MONTREAL – The CEO of online travel agency FlightHub says demand for air travel may be levelling off after soaring to pre-pandemic levels over the summer.
Christopher Cave says airline ticket sales dropped from September to October, when they typically rise ahead of the holiday season.
Cave says consumer anxiety over travel costs and the broader economy account for the softer sales, as higher interest rates and inflation weigh on Canadians’ budgets.
Data from the Airlines Reporting Corp. shows sales at U.S. travel agencies last month fell below levels from September as well as a year earlier.
However, Air Canada CEO Michael Rousseau said last month that demand remains stable, with advance ticket sales in its third quarter up by 55 per cent year-over-year.
TD Cowen analyst Helane Becker says bookings are up for Thanksgiving, Christmas and New Year’s but worse than expected for off-peak periods as travel plans adapt to strained purse strings.
This report by The Canadian Press was first published Nov. 16, 2023.
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