After the chaos of the past two-and-a-bit years, most households would love to have a break from everyday life and enjoy a taste of paradise. Travel companies have been patiently waiting for the day when bookings went up and Covid-related restrictions faded away.
We’re now edging towards this point in many parts of the world. Unfortunately, there’s a new stumbling block in the form of a potential recession.
Travel companies had hoped people would use the cash they’d saved during various Covid lockdowns to fund a nice foreign holiday or domestic break. For many, that cash is now needed as a buffer to help pay ever-rising bills.
“International Consolidated Airlines might still be losing large amounts of money, but it expects to return to profit from the second quarter, which is a big turning point for the company,” said AJ Bell’s Russ Mould.
“InterContinental Hotels is seeing the average rate per available room creep up versus a year ago and demand has been strong.
“Were it not for the pain of inflation, these travel companies would be singing from the rooftop. As it stands, both still face a fragile trading period ahead and it could be a while before they reach pre-Covid levels of business.”