The shape of passenger demand for air travel is shifting, as leisure travel’s increasing share of the total travel market is creating more pronounced summer traffic peaks. This demand shift is generating a new set of complications for airlines—which will require new solutions.
Prior to the disruption caused by the COVID-19 pandemic, leisure travel grew at a faster pace than business travel in many countries and regions. Globally, from 2010 to 2019, the compound annual growth rate for leisure air trips was 6.6 percent, in contrast to only 3.3 percent for business air trips. This growth gap has widened further in some places during air travel’s postpandemic recovery. As travel demand continues to ramp back up from its 2020…
