As aviation experts gathered at the Farnborough Airshow, a hot topic was declining global airline yields while demand for aircraft was still exceeding supply.
Airlines, including Lufthansa, Norwegian and Turkish LCC Pegasus, reported that there had been a decline in yields. The measure of profitability is calculated with the average fare paid per mile by each customer.
Pegasus Airlines CEO attributed the decline in profits to a normalisation of travel following the boom of the post-COVID wave. Travellers are once again looking for the most cost-effective ways to travel, according to Pegasus.
This is not affecting demand for new aircraft, however, according to manufacturers.
Speaking at an event leading up to the airshow, Airbus CEO, Guillaume Faury, said demand for widebody jets was particularly strong. According to reports from Reuters, airline executives attending the event lamented delivery delays from Airbus and Boeing.
“There’s no doubt we’ve disappointed our customers, and we’ve disappointed them over and over again, in many cases,” said Darren Hulst, Boeing's Vice President Commercial Marketing.
