More people will travel by plane this year despite pricey tickets: ING

More travelers will take the plane to go on holiday this year despite airline tickets being more expensive, economists from ING Research expect. According to the bank, the growth in air traffic is partly due to there being no more severe coronavirus restrictions.

Last year, the number of travelers and flights at Schiphol climbed to 73 and 80 percent of the 2019 level, respectively. 2019 was the last year before the coronavirus pandemic. “The strong recovery in European holiday and leisure traffic is also reflected in the annual figures on passenger numbers from Easyjet, Ryanair, and Wizz Air, among others,” the bank’s researchers said. “Signals about bookings indicate that this will continue in 2023.”

At the beginning of this year, the government more than tripled air passenger tax, from 8 euros per ticket to over 26 euros. That does not seem to deter people from flying.

"After the problems with scaling up at Schiphol due to staff shortages, the intention is that the daily limit on [departing] passengers will be let go at the end of March. In that case, the demand for air travel can also be better facilitated," the experts say. The government’s limitation of 440,000 flight movements to and from Schiphol remains lower than before the coronavirus pandemic.

The report also notes that after a strong recovery last year, the transport and logistics sector is now experiencing more economic headwinds. "Freight transport by land, water and air is suffering from reduced demand. However, even with continued capacity constraints, it will not be a lean year for most companies.” The analysts said that the mild drop in logistics demand may give a sense of relief, and not a feeling of doom, to many road transportation firms dealing with driver shortages.

In inland shipping, ship capacity is particularly constrained due to the sale of ships and also inefficiencies. "Higher rates will therefore also absorb the cost increase quite. After the e-commerce boom during coronavirus times, parcel transport is now the only one contending with a tangible correction," the report says.