Transatlantic pressures

Juliette O'Neill
By Juliette O'Neill September 9, 2016 11:31

Transatlantic pressures

The transatlantic route is the vital artery feeding IAG, American, Delta/Virgin Atlantic, United, TAP and many others. But, in past years, this most important of markets has been under attack from NAS and WOW. Between these two ULCCs (and when it comes to low cost long haul, these two airlines can be termed as ULCCs make no mistake, given that the mainline carriers are, in economy at least LCCs), the most important market of them all has had average fare prices slashed by some 32% over the past 12 months. This is set to fall further since WOW is now extending its reach into Miami with fares from $99.

The question everyone is thinking, but not asking, is: Are we seeing a re-run of Laker all over again? Will WOW succumb to the might of IAG/American and Delta/Virgin Atlantic?

Maybe now is the time for the mainline carriers to start worrying because without that reliance on economy passengers over the coming 12 months, they may be in difficulty as recent statistics point to a marked slowdown in premium traffic. This is backed by the recent cuts in BA business seats across the Atlantic and the suspension of La Compagnie’s London-NYC route. Concerns must be mounting for all the other all-business class airlines operating out of London Luton, Paris and other airfields.

Juliette O'Neill
By Juliette O'Neill September 9, 2016 11:31