Podcaster Jóhannes Bjarni Guðmundsson recently interviewed the Norwegian aviation analyst Hans Jörgen Elnæs and got his expert opinion on the current situation and prospects in the European aviation market, with a particular focus on the performance of Icelandic airlines Icelandair and Play.
Both airlines have reported substantial income and seat utilization in recent months, with increased availability of trips and the introduction of new destinations. Elnæs predicts a strong likelihood that demand for flights across the Atlantic Ocean will exceed the supply of airlines during the peak season this summer. The rapid growth experienced by Icelandic airlines and others in the region is a positive sign for the industry, but there are also potential dangers that must be considered.
While the increase in tourism is a welcome boost for Iceland’s economy, it also raises concerns about over-tourism and the strain it can put on the country’s infrastructure and natural resources. There are also concerns about the potential environmental damage caused by increased air traffic.
In addition, Elnæs warns that the rapid growth experienced by airlines like Icelandair and Play can also bring operational risks. Ensuring that staff and resources can keep up with demand is a challenge, and there is a risk of over-extending the airlines’ capabilities.
Despite these challenges, Elnæs remains optimistic about the future of Icelandic airlines and the broader European aviation market. He notes that the industry has shown its resilience in the face of the COVID-19 pandemic and that there is strong demand for air travel as borders reopen and restrictions ease.
Overall, the interview with Elnæs offers valuable insight into the current state of the European aviation market and the challenges and opportunities facing airlines such as Icelandair and Play. While risks are ahead, there is also great potential for growth and success in the coming months and years.