Putting up the ‘closed’ sign
As early as March, the North American air transport market, which represents 23 percent of global traffic, began to decline and several US-based airlines warned they would not meet their financial targets.
A study released this month by the World Travel and Tourism Council and Oxford Economics found that the United States was on track to lose some $12.5 billion in revenue from foreign tourists this year owing to worries about travelling to the country.
The group, made up of leading travel firms, said this “represents a direct blow to the US economy overall, impacting communities, jobs, and businesses from coast to coast”.
“While other nations are rolling out the welcome mat, the US government is putting up the ‘closed’ sign,” WTTC president Julia Simpson said.
Didier Brechemier, an airline industry expert at Roland Berger, said: “Today, bookings for the North Atlantic are lower than they were at the same time last year.”
IATA Director General Willie Walsh noted on Thursday “some signs of fragility of consumer and business confidence with continued weakness in the US domestic market and a sharp fall in North American premium class travel”.
Air transport has for decades benefited from the removal of import taxes, rising living standards — particularly in Asia — and open borders, with the number of air trips tripling since 2000.
But the return of protectionism is endangering the industrial model of aircraft manufacturers, whose assembly lines mobilise suppliers worldwide, with costs likely to increase, putting more of a burden on carriers.
