International Airline Travel Demand on the Rise in Post-Pandemic Times

In a post-pandemic world, the aviation industry that once struggled is now flourishing with shifting trends and new demands of the field. International travel is one area that is seeing such demands, as it recovers from the deep deficit caused by the pandemic. In response, United Airlines has taken forward action, placing large orders for new aircraft to accommodate the growing travel expectations of a soon-to-be thriving market.

International Travel for Industry Expansion

For airlines like United, higher-margin international travel is an important financial focus, as it has accounted for approximately 39% of their passenger revenue this year alone—a notable increase from pre-pandemic times. In addition, United Airlines expects a large portion of its growth to derive from global long-haul flying, which is a direct or non-stop international flight over 6 hours. In response, the airline ordered 110 aircraft from Boeing and Airbus in preparation of this anticipated expansion of its international network. But with a backlog of orders being managed by these companies due to supply shortages and overwhelming order demands, United and other airlines will need to wait until the end of this decade for the arrival of any new aircraft.

Evolving Aviation Technology

Airlines are recognizing a shift in the technology landscape when it comes to industry changes and necessary fleet upgrades in the next several years.  The airline remains committed to the 787 aircraft, as the age of these planes is a testament to Boeing’s reliability and safety, but will be adding new 787’s as well as large, narrowbody jets like the A321 to their fleet, noting this model’s “fuel efficiency, smaller carbon footprint and lower maintenance and operating costs will be a ‘game changer’” for the company. According to Skift.com, “the orders are driven, in part, by United’s need to replace older planes by the end of the decade, as well as grow at capacity-constrained airports around the world.” United Airlines owns some of the world’s oldest planes, with an average fleet age of 16.3 years, and with some purchased during the 1990s which are now over 30 years old. And with United’s recent application to become the first non-stop flight carrier from Houston, TX to Tokyo, JP, this kind of future-focused, community-driven mentality is key to the airline’s continued and sustained international success.

Trends in the Aviation Industry

The U.S. Travel Association forecasts inbound travel volume to grow 31% by the end of 2023, 18% in 2024, and to see a full volume recovery from pre-pandemic times by 2025. Currently, inbound international travel stands at 84% of its former numbers, but is estimated to return to 99% by 2024. Spending in the area of business travel is expected to reach $1.4 trillion by 2024 and $1.8 trillion by 2027, with 2023 sector spending at an approximate 32% increase. In 2022, air travel brought in $183 billion of business travel spending. With these positive increases, the aviation industry is expected to see a growing trend of success for which airlines need to be prepared, not only with proper aircraft equipment but trained pilots as well.

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