Air travel is closely related to economic growth, and Europe’s ‘flag’ carriers have had a disappointing summer.
The IMF has cut its forecasts for global economic growth in 2012-2013 to just over 1%.
European flag airlines are so far responding not by cutting capacity but by cancelling growth plans. Low cost airlines, however, and US airlines are cutting capacity.
American Airlines in particular may file for Chapter 11 bankruptcy soon. It is the only large US airline not to have done so in the past decade, and the purpose may be in order to force renegotiation of employment and pension contracts.
AA pilots have been taking retirement in unusually large numbers.
In the face of these difficult trading conditions, resistance to the EU’s introduction of a carbon trading system has been growing significantly.