Global travellers are shifting to domestic rail and road trips this summer, avoiding long-haul flights as $100 oil prices and the Iran war disrupt international aviation.
Airlines face severe financial strain: Air France-KLM expects an extra $2.4 billion in fuel costs, while IAG (British Airways) and Lufthansa project $2 billion each.
The bankruptcy of Spirit Airlines has raised concerns for low-margin carriers like Wizz Air and airBaltic.
Short-haul destinations perceived as safe—including Spain, Greece, Portugal, and Caribbean resorts—are seeing surges in bookings. Last-minute reservations have jumped 15% as travellers monitor inflation and geopolitical developments.
Alternative transportation is booming. Eurostar ticket sales rose 25%, camper van rentals via Roadsurfer increased, and tour operators such as Voyageurs du Monde reported March business declines of up to 25% as travellers opt for caution.
Business travel is also pivoting to rail, with corporate software firm SAP reporting significant increases in train-based bookings across Europe.
Overall demand remains resilient, suggesting a temporary shift rather than a collapse in travel interest.
