ERA may face a difficult time amidst credit-crunch "uncertainty"
The European Region Airline Association (ERA) has announced that the current economic climate is creating "a lot of uncertainty" in the industry.
Director of infrastructure and environment at ERA Simon McNamara suggested that the next 12 to 18 months may be difficult given the volatile and unstable economy.
He referred to the fluctuating cost of fuel and passenger demand as the "two main factors" for the uncertainty surrounding the industry, which may also impact the demand for travel insurance.
Mr McNamara said "people's willingness to travel, whether they take discretionary trips, whether they still take business trips" will have an impact.
He added that 50 per cent of ERA's customers are business passengers so provided the credit crunch does not discourage "intra-Europe" travel, he expects the industry to remain stable.
Despite the fact that ERA has experienced its slowest period of growth this year since 9/11, it still reported a rise in average scheduled passenger load by 0.5 per cent from 2007 to 2008.
(Researchers) ERA: There is a lot of "uncertainty" in the airline industry at the moment
The European Region Airlines Association has announced that the fluctuating cost of fuel and passenger demand has left the industry in a state of uncertainty, which may also affect travel insurance.