CAPA: Business travel collapse will compound revenue impact for airlines

CAPA - Centre for Aviation, in a report entitled: 'European airline capacity outlook. Uncertainty & COVID-19 cases rise', stated (23-Sep-2020) Europe is now into a fifth consecutive week of deepening year-on-year cuts in seat capacity. Europe's cut of 60.1% in the week commencing 21-Sep-2020 is deeper than North America's 56.1% and Asia Pacific's 39.9%, but less substantial than Latin America's 66.8%, the Middle East's 66.1% and Africa's 63.5%. European route numbers have been cut by 38.2%, showing that airlines are preserving networks at the expense of the frequencies crucial for business travel. The greater collapse in business travel versus total air traffic compounds the revenue hit to airlines whose profitability depends on high yield passengers. [more - CAPA Analysis]