Canadians are still travelling despite tough economic conditions, according to the head of an aviation consulting firm who says consumers are electing to reduce their spending in other ways. 

Robert Kokonis, president and managing director of AirTrav Inc., told BNN Bloomberg that he had suspected consumers might reduce travel spending by the end of 2023 due to macroeconomic issues like inflation and high interest rates – but that has not been the case.

Instead, consumers have “been very, very resilient” in their travel spending, he said.

“I think what's happening (is) people are willing to pull back elsewhere to protect their proposed travel spend,” Kokonis said in a Tuesday television interview.

“I expect that to continue into 2024.”

INDUSTRY OUTLOOK

Within the Canadian aviation industry, Kokonis said there are more firms operating than what the market can sustain, which could pose challenges for companies.

“It's all economics 101, supply and demand,” he said. “Too many seats chasing too few passengers is going to either dry down fares or make profitability a challenge for some of the incumbents (and) some of the new players as well.”

For the full interview with Kokonis, click on the video at the top of this article.