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West Australian
7 days ago
- Business
- West Australian
Global corporate travel a casualty of Donald Trump's war on trade
Optimism in the global business travel sector has dropped by more than half this year, according to a report published by the Global Business Travel Association. Positive sentiment fell from 67 per cent in November 2024 to 31 per cent in April 2025, according to the report which surveyed more than 900 business travel professionals on the affect of tariffs, tightened border policies and other US government policies announced this year. More than one in four respondents in Canada, the US and Europe said they felt 'pessimistic' or 'very pessimistic' about the industry outlook this year. However, 40 per cent of those surveyed said they felt neither positive nor negative. 'Since I have been in my role for four years, I haven't seen this high of a level of uncertainty,' Suzanne Neufang, the association's CEO, said. The survey showed nearly 30 per cent of business travel buyers anticipate their companies will reduce employee trips this year, while some 20 per cent said they weren't sure, it showed. 'They're not even confident enough to be able to say things will be fine or things won't be fine,' she said. Some 27 per cent of respondents also said they expect business travel spending to decrease as well. A third of business travel buyers said their companies have either changed, or are considering changing, policies regarding travel to or from the US, the report showed. Some 6 per cent said their companies had relocated events from the US to another country. 'From an APAC perspective, and certainly from a European perspective, maybe even LATAM, there's the opportunity to be the source of where these meetings take place,' Neufang said. 'There are many other opportunities to be a winner in this trade game.' Business travel professionals expressed several concerns about the potential for the long-term impact caused by decisions of the Trump Administration this year, led by worries over business travel costs (54 per cent) and problems processing visas (46 per cent). Global airfares, however, are slightly down — about $US17, or 2.2 per cent year-to-date — according to FCM Consulting, a division of the business travel company FCM Travel. Nevertheless, the global business travel market is still on track to top $US1.6 trillion by the end of 2025, Neufang said. However, she said that's only 'if the last 100 days don't impact negatively everywhere'. By 2028, the Global Business Travel Association expects, that number will cross the $US2tr mark, she said. She noted that while business travel volumes haven't returned to pre-pandemic levels, business travel spending fully recovered in 2024, partly as a result of inflation. But she said the trade war initiated by the Trump Administration could spell a bout of new business trips. 'During times of trade wars, business travel may actually increase for at least a period of time — for new partners to be found [and] new markets to be built,' she said. 'You lose a customer, you need to find another one. So I think that perspective doesn't mean all doom and gloom for us.' However, if tariffs remain elevated, 'There will definitely be an impact to U.S. travel ... But I think Europe, Asia, Europe to Asia, Asia to Europe. I think anywhere to Africa, all of those are probably fine.' Leisure travel to the United States has fallen in 2025. International visitor spending is projected to drop 4.7 per cent from 2024, representing some $8.5 billion for the U.S. travel industry, in a year revenues were once widely expected to grow. CNBC
Daily Mail
28-05-2025
- Business
- Daily Mail
Millions of Aussie jetsetters to enjoy discounted airfares as Qantas, Virgin, Jetstar record eye-watering profits
Increased aviation routes and low fuel costs will keep downward pressure on airfares in the coming months, with prices down 12 per cent at the start of 2025. Cheaper jet fuel and more seat availability have driven down prices for Australian jetsetters and the price relief is expected to continue. Domestic economy airfares were 12 per cent cheaper in the first two months of 2025 than the same time last year, data compiled by corporate travel advisers FCM Consulting shows. That represents $29 off the average ticket price. The price drop comes despite the Australian Competition and Consumer Commission claiming limited domestic competition was helping the country's dominant airline groups - Qantas and Virgin - boost their profit margins. While Qantas Group earnings before tax soared to $1.5billion in the last six months of 2024, and Virgin Australia also announced record profits, market dynamics since the new year have benefited travellers. Globally, jet fuel is down almost 17 per cent compared to the 2024 average, driven in part by economic uncertainty from Donald Trump's trade war curtailing demand for oil. Aussie travellers saved about $29 on the average ticket price at the start of 2025. Fuel is the largest operating cost for airlines, so fluctuations flow through to airfares. Ongoing weakness in jet fuel prices will continue to put downward pressure on airfares in coming months, the ACCC predicts. FCM Consulting director Felicity Burke said Australia and the broader Asia-Pacific region had experienced sharper drops in fares compared to the rest of the world. 'We've been saying for a long time now that global capacity increases and other factors like jet barrel cost reductions would go hand-in-hand with airfare price drops in various regions, and this is one of several reasons that we're now seeing this come to fruition,' she said. Airfares for the 'golden triangle' route between Melbourne, Sydney and Brisbane remained fairly flat - a consequence of higher demand resulting in the fewest spare seats between the major capitals. Prices shot up post-COVID as airlines struggled to keep up with a sharp rebound in demand but have moderated as more seats were brought online. Global capacity in May was seven per cent higher than 2019 and five per cent higher than the same time last year. International economy airfares out of Australia dropped five per cent in January and February compared to the same period last year, while business class tickets fell three per cent. Domestic economy airfares were 12 per cent, or $29, cheaper than the first 2 months of 2024 (a Qantas plane is pictured at Brisbane Airport) More routes are set to launch in the second half of this year, with Virgin's partnership with Qatar Airways adding further competition on the highly-trafficked Australia to Europe corridor. 'Through this partnership with a world-leading global airline, we expect to not only create more choice for travellers but also drive healthy competition, which typically helps to place downward pressure on fares over time,' a Virgin Australia spokesperson said. Qantas will launch new routes this year, putting more downward pressure on ticket prices. Qantas will also launch new routes in late 2025, including Adelaide to Auckland and Perth to Auckland and Johannesburg. Cases of tourists being detained and deported by US border security have spooked travellers. Graham Turner, the chief executive of FCM owner Flight Centre, said leisure travel bookings to the US dropped by up to 15 per cent in the first three months of the year. But it has had little effect on airfares to the US which fell by about three per cent, largely in line with the rest of the world.
West Australian
27-05-2025
- Business
- West Australian
More seats, cheaper fuel cut airfare costs for Aussies
Cheaper jet fuel and more seat availability have driven down prices for Australian jetsetters and the price relief is expected to continue. Domestic economy airfares were 12 per cent cheaper in the first two months of 2025 than the same time last year, data compiled by corporate travel advisers FCM Consulting shows. That represents $29 off the average ticket price. The price drop comes despite the Australian Competition and Consumer Commission claiming limited domestic competition was helping the country's dominant airline groups - Qantas and Virgin - boost their profit margins. While Qantas Group earnings before tax soared to $1.5 billion in the last six months of 2024, and Virgin Australia also announced record profits, market dynamics since the new year have benefited travellers. Globally, jet fuel is down almost 17 per cent compared to the 2024 average, driven in part by economic uncertainty from Donald Trump's trade war curtailing demand for oil. Fuel is the largest operating cost for airlines, so fluctuations flow through to airfares. Ongoing weakness in jet fuel prices will continue to put downward pressure on airfares in coming months, the ACCC predicts. FCM Consulting director Felicity Burke said Australia and the broader Asia-Pacific region had experienced sharper drops in fares compared to the rest of the world. "We've been saying for a long time now that global capacity increases and other factors like jet barrel cost reductions would go hand-in-hand with airfare price drops in various regions, and this is one of several reasons that we're now seeing this come to fruition," she said. Airfares for the "golden triangle" route between Melbourne, Sydney and Brisbane remained fairly flat - a consequence of higher demand resulting in the fewest spare seats between the major capitals. Prices shot up post-COVID as airlines struggled to keep up with a sharp rebound in demand but have moderated as more seats were brought online. Global capacity in May was seven per cent higher than 2019 and five per cent higher than the same time last year. International economy airfares out of Australia dropped five per cent in January and February compared to the same period last year, while business class tickets fell three per cent. More routes are set to launch in the second half of this year, with Virgin's partnership with Qatar Airways adding further competition on the highly-trafficked Australia to Europe corridor. "Through this partnership with a world-leading global airline, we expect to not only create more choice for travellers but also drive healthy competition, which typically helps to place downward pressure on fares over time," a Virgin Australia spokesperson said. Qantas will also launch new routes in late 2025, including Adelaide to Auckland and Perth to Auckland and Johannesburg. Cases of tourists being detained and deported by US border security have spooked travellers. Graham Turner, the chief executive of FCM owner Flight Centre, said leisure travel bookings to the US dropped by up to 15 per cent in the first three months of the year. But it has had little effect on airfares to the US which fell by about three per cent, largely in line with the rest of the world.
Perth Now
27-05-2025
- Business
- Perth Now
More seats, cheaper fuel cut airfare costs for Aussies
Cheaper jet fuel and more seat availability have driven down prices for Australian jetsetters and the price relief is expected to continue. Domestic economy airfares were 12 per cent cheaper in the first two months of 2025 than the same time last year, data compiled by corporate travel advisers FCM Consulting shows. That represents $29 off the average ticket price. The price drop comes despite the Australian Competition and Consumer Commission claiming limited domestic competition was helping the country's dominant airline groups - Qantas and Virgin - boost their profit margins. While Qantas Group earnings before tax soared to $1.5 billion in the last six months of 2024, and Virgin Australia also announced record profits, market dynamics since the new year have benefited travellers. Globally, jet fuel is down almost 17 per cent compared to the 2024 average, driven in part by economic uncertainty from Donald Trump's trade war curtailing demand for oil. Fuel is the largest operating cost for airlines, so fluctuations flow through to airfares. Ongoing weakness in jet fuel prices will continue to put downward pressure on airfares in coming months, the ACCC predicts. FCM Consulting director Felicity Burke said Australia and the broader Asia-Pacific region had experienced sharper drops in fares compared to the rest of the world. "We've been saying for a long time now that global capacity increases and other factors like jet barrel cost reductions would go hand-in-hand with airfare price drops in various regions, and this is one of several reasons that we're now seeing this come to fruition," she said. Airfares for the "golden triangle" route between Melbourne, Sydney and Brisbane remained fairly flat - a consequence of higher demand resulting in the fewest spare seats between the major capitals. Prices shot up post-COVID as airlines struggled to keep up with a sharp rebound in demand but have moderated as more seats were brought online. Global capacity in May was seven per cent higher than 2019 and five per cent higher than the same time last year. International economy airfares out of Australia dropped five per cent in January and February compared to the same period last year, while business class tickets fell three per cent. More routes are set to launch in the second half of this year, with Virgin's partnership with Qatar Airways adding further competition on the highly-trafficked Australia to Europe corridor. "Through this partnership with a world-leading global airline, we expect to not only create more choice for travellers but also drive healthy competition, which typically helps to place downward pressure on fares over time," a Virgin Australia spokesperson said. Qantas will also launch new routes in late 2025, including Adelaide to Auckland and Perth to Auckland and Johannesburg. Cases of tourists being detained and deported by US border security have spooked travellers. Graham Turner, the chief executive of FCM owner Flight Centre, said leisure travel bookings to the US dropped by up to 15 per cent in the first three months of the year. But it has had little effect on airfares to the US which fell by about three per cent, largely in line with the rest of the world.
