Every quarter, CWT’s experts will share the last trends and use advance predictive analytics to provide travel managers our price forecast for air, bringing the crucial information closer to when booking decisions are made.
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Expect 2% increase in average ticket prices through April
In our first quarterly air trends report in 2020, CWT Solutions Group predicts ATPs will rise by 2% from February through April, compared with the last quarter of 2019.
Higher oil prices are driving the increase, which, in turn, is being fueled by new tensions in the Middle East. In January, crude oil and jet fuel prices climbed as high as $70 per barrel and $84 per barrel, respectively, triggered by the latest hostilities between the US and Iran. While oil prices quickly stabilized from that high, we expect a fair amount of volatility in fuel prices will be the norm in 2020, as they continue to be subjected to the dangerous, and often unpredictable, whims of geopolitics.
Another development we’re following is one that, while slower-moving, is nonetheless, here to stay: sustainability in business travel, as the industry grapples with the need to more aggressively address its impact on the environment. How that affects demand and air prices over the long-term is still too soon to tell. But one indication came in as early as mid-2019, when the US Energy Information Administration said that prices for jet fuel will increase by 10 cents a gallon in 2020 from 2019.
This was mainly due to a new marine fuel regulation that is meant to improve air quality. Reducing air pollution from sea-going vessels requires using lower-sulfur fuel, which will, in turn, cut into available supply for jet fuel, driving up prices, according to a report from Reuters.
In our next quarterly report, we will continue to monitor the impact of both geopolitical and climate risks on our industry and bring you our latest analysis, as well as our most forward-looking and actionable recommendations to help you make an informed purchasing decision.
Global Trend - All CWT
Average Ticket Price
Forecasting from February to April 2020
Released February 13, 2020
Apr US$673.60
Global Trend - All CWT
Economy Class Usage
Forecasting from February to April 2020
Released February 13, 2020
Apr 91.84%
Global Trend - All CWT
Advanced booking usage
Forecasting from February to April 2020
Released February 13, 2020
Apr 43.98%
Global Trend - All CWT
Online booking tools usage
Forecasting from February to April 2020
Released February 13, 2020
Apr 57.99%
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