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Meanwhile, French Airlines planes are full

After a usually profitable summer season, winter is shaping up in the same vein for French aviation. The subsequent month is marked by “Strong need to journey” According to the brand new president of the National Federation of Aviation and its Trades (FNAM), Pascal de Izaguirre, CEO of Corsair Company.

“Trends for winter are very dynamic, with excellent development which reveals that the need and must journey remains to be there”, rejoiced Pascal de Izaguirre. An statement extensively shared by all French corporations, which in recent times have accustomed us to much less optimism. And if the president of FNAM confirms “Be cautious at this stage”That’s nonetheless the purpose “There is a sure distinction between what’s being mentioned in regards to the financial atmosphere, the uncertainty, the geopolitical scenario on the one hand and the demand on the opposite, which exists in all buyer segments. »

Read extra: Air transport: Price warfare rages in French abroad divisions, profitability suffers

Maximum worth elasticity

Equally stunning, demand has but to indicate any indicators of change within the face of rising costs. Even if the rise in manufacturing prices is just partially handed on to ticket costs, they are up considerably from final 12 months. Indeed, between September 2021 and September 2021, the General Directorate of Civil Aviation (DGAC) reported a worth enhance of 14% on home routes and 17% between mainland France and overseas. Internationally, development reached 24% in medium-haul and 15% in long-haul. Laurent Timsit, normal consultant of FNAM, all the identical identified that it returned to the value degree recognized in 2017, earlier than the autumn in 2020, the years simply earlier than the disaster had already produced low factors.

“We nonetheless have a little bit of pent-up demand that may’t be totally expressed over the summer season.”, defined Pascal de Izaguirre to clarify this elasticity. But he believes that French aviation is creating in an atmosphere within the means of normalization. “We are fully out of restrictions on account of covid”He mentioned, indicating that even China has begun to loosen up its measures.

Long-haul transport, lengthy hampered by these well being constraints, is the driving drive behind this new development. “Highly buoyant axis”, particularly abroad and North America. And this, no section confused between enterprise, leisure and affinity.

Pascal de Izaguirre acknowledged that the scenario is extra sophisticated for medium-distance and home visitors, which is faster to restart after a disaster. They are significantly marked by the weak spot of enterprise journey, which is struggling to regain its earlier ranges underneath the mixed results of inflation, dangers of recession and company social accountability (CSR) insurance policies.

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Career underneath stress

Despite this distinction between lengthy and medium distance, the French firm is so “Their manufacturing capability has been fully reprogrammed” For this winter. So Air France ought to have extra long-haul capability this winter than this summer season. Globally, the nationwide firm will redeploy your complete fleet for exercise ranges round 2019. “Same goes for Corsair”Cleverly slips Pascal de Izaguirre.

There are nonetheless restricted components resembling recruiting. Although job creation within the sector has resumed with a constructive steadiness of round 2,500 jobs by the tip of 2023, regardless of the convergence of all occupations, some occupations are in pressure, from technical flight crew, pilots to vital coaching intervals.

Also ReadAir transport: Fears that summer season’s sturdy rebound is only a flash within the pan

A fragile, even precarious financial scenario with out state help

On the opposite hand, the actual unfavorable aspect comes from the monetary situation of the businesses. Apart from Air France, who took benefit of the summer season interval, there shouldn’t be many beneficiary corporations of the French flag. The important wrongdoer is the value of kerosene which remains to be 50% greater than a 12 months in the past. Outside of crude oil costs, the scenario is worsened by nonetheless excessive refining margins. Other components are added, resembling a 25% enhance in air navigation prices. Airport prices stay average for the second, however the scenario varies from one airport to a different, warns Laurent Timsit, ADP Group which proposes a freeze for 2023 and Nice Airport which needs a rise. “rather more vital”. Since these prices are solely partially handed on to ticket costs, these margins are essentially shrinking, whereas they are not unfavorable.

This comes on high of an already sophisticated monetary scenario on the finish of the pandemic, with heavy debt to beat the disaster. “If all corporations needed to begin returning their EMPs on schedule, it might get slightly sophisticated,” warns Pascal de Izaguirre. It due to this fact asks the state to proceed its help for the sector, in “Monitoring the monetary situation of the corporate and in view of monetary restructuring help”.

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It asks the federal government to watch out that they don’t additional penalize the competitiveness of airways and contribute to the financing of airport safety prices. The president of FNAM particularly needs that the state participate within the loans contracted by the sector to finance these actions, which he considers sovereign. The authorities truly selected to supply an advance relatively than a subsidy to finance the safety and security mission. These had been estimated by the Court of Auditors at 700 million euros between 2020 and 2022, and should be repaid with curiosity between 2024 and 2030.