While I think there is a return to optimism (from the downright pessimism) all is not yet right. We are not back to a state of growth if we will ever be back to that same level that existed in say 2007.
The latest data from TIA and the UK's CAA for the month of July shows the 9th consecutive fall of expenditure. Remember that this was the month when traffic started to pick up. With the pound strengthening against the dollar (as the latter falls yet again) we should see some positive signs soon. Given the lag time – we may see traffic uptick in September compared to 9/08 when confidence took a dive.
The positive side is that on time performance has improved.
Yields will continue to be depressed for quite some time. 2010 will be a year of stability. As I predicted at the end of 2008 – we should see some positive signs in September – just based on the drop in the prior year. Bu the emergence from the recession will not be even. The US may emerge faster than say UK. Asia Pacific is still pretty much in the doldrums. LCCs are fairing a LOT better than their networked bretheren.
Let’s hope that things start to improve soon.
Cheers
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