Painful air travelling times are expected

Europe’s carriers are expected to lose US$1 billion in 2009. A forecast 2.9% fall in the continent’s GDP is expected to result in a drop in demand of 6.5%. Capacity cuts of 5.3% will not keep pace with the fall in demand, driving yields and profitability down. Source: IATA

Worldwide traffic went down 10% in February with premium class traffic declining even more dramatically driven by companies cutting business trips and asking to their employers to travel in economy class. What are the practical consequences for the European business travelers?

↑ ↑ ↑ Free upgrades in premium classes for Elite members will become more and more frequent because business and first class cabins are empty or half empty…..

↑ ↑ Easier than before to redeem a free flight with miles - if airlines will not  soon to cut number of these seats available

↓ ↓ ↓ Reduction of capacity means cuts of flights, so reduced frequency on most popular routes and cuts of direct flights (both intercontinental and to/from minor airports) resulting in more painful travelling for everybody……