LONDON — Airlines in Europe are looking at sunshine and beaches as their route to making money again.
The sector has been severely hit by the coronavirus pandemic, with people being advised to stay at home. Lufthansa said on Thursday that it registered a 75% drop in the number of passengers between 2019 and 2020 — highlighting the devastating impact experienced by many airlines since Covid hit.
However, they are now studying ways to adjust business models as economies attempt to reopen in the coming months.
“European carriers will pivot to leisure travel,” Adrian Yanoshik, an equity analyst at Berenberg, told CNBC Wednesday. “This is a tactical response. You follow the flow of people,” he said.
As European economies look at easing restrictions, it’s expected that people will try to go on vacation as soon as possible, after about a year of being stuck at home. In contrast, business travel is seen as taking longer to recover.
Click here to read more.