Air travel rebounds: Passengers at 69.1% of pre-pandemic levels

<p>Global air travel is perhaps the single-best indicator of covid impacts and the latest data shows that we're on the cusp of a full retracement.</p><p>The May report from IATA shows that passenger-kilometers are at 96.1% of the pre-pandemic level, which is up 39.1% year-over-year. I strongly suspect the job is completed in June or July.</p><p>What's notable is the skew in traffic and the risks later. Domestic air travel is above pre-covid levels for the second month but international travel is still down 9.2%. Some of that is the slower return of Asian customers and covid concerns when booking vacations but there's also an element of business travel that's missing.</p><p>The rise of remote work has curbed business travel demand and right now that's being replaced by revenge travel post-pandemic. In time, the demand for travel might be satiated and that will result in travel settling out at lower levels, or at least a lower trajectory than pre-pandemic. Hotels are facing the same question but for now, a return to the office and international business travel has some momentum.</p>

This article was written by Adam Button at www.forexlive.com.