Confidence or the lack of it is the problem
The slide in the pound has made Europe much more expensive to visit, some will travel further a lot will stay at home or travel to Europe less. Many of our regular travellers have in the past flown to Europe 3 or more times in a year, these are normal working class types not the rich & famous, if they cut one trip a year out then volume will fall by a thrid and over time airlines have to trim capacity to match, which mean aircraft and crews unless they can grow new volume by flying further a field as Jet2 have done, but it cost more and puts more hours on the old girls.
It is the job of banks to lend and it was the shortage of new housing plus massive demand from the buy to let market and the large influx of overseas workers that drove demand and prices to level that meant new ways of financing house purchases became the norm. Interest only 125% L/E and the rest. The only saving grace at the minute is very low interest rates which mean people on interest only are paying next to nothing (if they have a tracker) but it wont and can't last our borrowing is now so large that within a few years we will probably be back up to base rates over 5% to control inflation.
Tomorrows budget will make grim reading, but most of the pain will be left until after the next general election and who ever wins that will be handed a poison chalice.
My advice, take the profit on your Jet2 shares and pay down your debts, one is going to go down and the other is going to go up! i'll leave it for you to figure which is which, time to take a CFM to Spain (one way)!!
