Oil prices have risen by 50% in the space of a year, wages have been revised upwards in the face of inflation, and the dollar - the sector's currency of exchange - has appreciated by 40% against the euro: like all economic players, the air transport sector is experiencing strong pressure on its production costs. " Faced with this situation, we were obliged toautomatically raise our prices" explained Marc Rochet, head of Air Caraïbes and French Bee, at a recent press briefing held by the Fédération nationale de l'aviation marchande (FNAM).
According to the Direction Générale de l'Aviation Civile (DGAC), the price of air tickets from France rose by 18.9% compared with September 2021. " But with this price trend, we're barely breaking even, or even below the increase we experienced.says Marc Rochet. We can therefore expect further rises." . However, while the price surge seen in recent months is set to continue, it is likely to be more modest, as airlines now have less room to manoeuvre when it comes to not to break the upturn in demand.
Because air transport has finally emerged from the crisis. " Both the desire and the need to travel are there" said a delighted Pascal de Izaguirre, President of the Fédération nationale de l'aviation marchande (FNAM) and also CEO of Corsair. After a busy summer, next winter is shaping up very nicely. " Commitments are good, particularly on long-haul routes, with a strong recovery towards the United States, sun destinations and the departure point for cruises." emphasised Marc Rochet. The "revenge travel" effect is driving the recovery, with tourists looking for a long-haul holiday or VFR (Visiting Friends and Relatives) customers who are once again able to visit their loved ones after long months. In this context, traffic to the French Overseas Departments and Territories, for example, has returned to pre-pandemic levels, and even exceeded them last August.
Alain Battisti, CEO of Chalair and former chairman of the FNAM, nevertheless qualifies this positive assessment: " Despite the perceived upturn, traffic in August was at 87.5% of its level in 201913 points lower. Which is not neutral" . With Asian long-haul destinations still closed and North America only reopening in the summer, traffic for the first nine months of the year is still 22 points down on the excellent year seen in 2019. " Paris hubs are performing well, but some airports are experiencing traffic shortfalls" says Alain Battisti, referring in particular to the case of Bordeaux, which has seen 1.5 million passengers take to the skies.
Furthermore, while leisure and VFR customers have largely contributed to the current good results, this is not the case for business travellers. " Businesses are seeing less of a recovery in traffic than other segments" says Alain Battisti. While the flow of business travellers to North America has rapidly reached good levels, Franco-French and European services are recording significant loss of corporate traffic. A phenomenon that is set to continue, as Alain Battisti points out that ". by 2023, some major CAC 40 groups will have cut their air travel budgets by 50%, or even by two-thirds" .
The air transport industry explains this decline in the number of business customers in a number of ways, including anticipation of the economic recession, but also and above all changes in working habits and the use of videoconferencing and, of course, the application of the increasingly strict CSR policies. " Businesses are more involved than governments or individuals in reducing their environmental footprint" says Pascal de Izaguirre.
Hence the importance of the issue of the impact of air transport on the environment. " This is the major challenge of the coming decades for a sector resolutely committed to its energy transition, emphasises Pascal de Izaguirre. It is the first to have drawn up a roadmap with precise targets for achieving decarbonisation by 2050." . The President of the FNAM therefore spoke out against "aviation bashing", which ". in a disproportionate and ideological manner" makes the sector " a scapegoat and hides the reality of this commitment" .
While aircraft manufacturers and airlines are working on the innovations and technological breakthroughs that will make the sector's energy transition possible, the main lever for optimising emissions today remains the sustainable aviation fuelmore commonly known as SAF, for "sustainable aviation fuel". For the time being, however, this fuel is as rare as it is expensive, especially in France. While SAF is gaining ground in the United States thanks to subsidies and tax incentives, its production in France remains infinitesimal.
" If we had SAF at a good price and in sufficient quantities today, we could go much further, as today's aircraft engines can incorporate 50%.emphasises Pascal de Izaguirre. Targets have been set for 2019 with incorporation quotas, but we have no visibility on production capacity or costs." . Hence the FNAM's urgent invitation to the government to develop an industrial sector in the regionThis will create jobs and strengthen the country's energy independence by bringing all the stakeholders, including the energy companies, together around one table.
At the same time, the FNAM is also asking the public authorities not to penalise, by giving in to excessive taxationThis is all the more true given that, after two years of pandemics, major debts and now an economic crisis, the sector's economic health is still fragile. Particularly as, after two years of pandemic, high debts and now an economic crisis, the sector's economic health is still fragile.
