Blog The aviation industry claims more flying is essential for the economy, the numbers say otherwise Latest data shows that in 2023, there were 3.9 million fewer business air trips compared to 2019 By Alex Chapman 24 May 2024 This week I attended an event the aviation industry hosted in parliament aimed at convincing the next UK government of the “crucial role of the sector in underpinning economic growth”. The decline of business use of air travel undermines their argument. New data released by the Office for National Statistics last week
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The aviation industry claims more flying is essential for the economy, the numbers say otherwise
Latest data shows that in 2023, there were 3.9 million fewer business air trips compared to 2019
24 May 2024
This week I attended an event the aviation industry hosted in parliament aimed at convincing the next UK government of the “crucial role of the sector in underpinning economic growth”. The decline of business use of air travel undermines their argument.
New data released by the Office for National Statistics last week highlights the problem with the aviation industry’s claims. The data, from 2023, provides a useful benchmark because by then the economy was larger (even after considering inflation), by around 1.8%, than it was pre-pandemic (2019). What this means is that the recovery was complete. All things being equal, we would expect business use of air travel therefore to have re-bounded. Indeed, we might have expected a bumper year for business travel, as companies caught up on trips they couldn’t make under Covid restrictions, the release of pent-up demand. No such recovery has occurred.
In fact, in 2023, there were 3.9 million fewer air trips made for business purposes, a decline of 29% since 2019. Alongside this, business spending on air trips declined by £2.9 billion (-22%). This new data highlights an acceleration in a pre-existing trend, described in NEF’s report last year, of ‘decoupling’ of business air travel and the economy.
The figure below shows that the number of corporate air trips per million pounds of real GDP had been declining steadily from a peak of around eight flights per £million in the year 2000, but has crashed following the pandemic to a new low of only four flights per £million. Airline executives are well-aware of this phenomenon, and indeed have been adjusting their business strategies accordingly, but this hasn’t stopped the industry, and particularly airports, from making grossly exaggerated claims about the business benefits of air travel growth, and particularly airport expansion.
Figure 1: The number of business air trips per £million GDP have fallen since the pandemic
Topics Climate change Transport