I spent the past weekend in Rio de Janeiro at the IATA AGM. In between running around and interviewing airline executives, I did have the chance to enjoy the beach and some Brazilian food.
Among the biggest takeaways from the IATA AGM was that consumers still want to spend on travel, even as surging fuel prices have pushed up airfares on average by 20%.
"I expected a bigger elasticity effect than we’ve seen so far. I still do expect it," said United Airlines CEO Scott Kirby. "But I’ve been a little surprised that we haven’t seen more of that so far."
Alaska Airlines told Skift that it doesn’t expect demand to materially change in the second half of the year. And WestJet CEO Alexis von Hoensbroech said demand has been so healthy that the low-cost Canadian carrier hasn’t had to change its network significantly in response to high fuel prices.
With U.S. airline earnings set to start next month, we’ll get more color on how consumers are spending during the peak summer travel season.
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SKIFT PODCAST NETWORK
United CEO Scott Kirby did not hold back at IATA. In this clip from Airline Weekly Lounge, Gordon Smith and Jay Shabat break down Kirby's blunt message to Boeing and Airbus about never again building a plane with only one engine option, and why he singled out Rolls Royce by name as the one supplier he has a problem with right now.
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