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Old 30th Mar 2017, 11:28
  #997 (permalink)  
A320.b744
 
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inOban makes a good point. The rise in inflation since the Brexit vote, though still below the BofE target, is a rapid increase to what we've seen over the last few years, and will be a problem for Flybe. Prices of goods have increased, but real wages have not yet caught up to the inflation growth, meaning people are less well off in real terms. If inflation continues to rise, it'll be even harder for wages to respond, meaning real incomes will continue to fall steadily. Nominal wage growth needs to equal or exceed inflation to ensure that people's real wages are growing. Over the next few years I can't see that happening, and Flybe - as well as BA and easyJet domestic services - will suffer as a result.

Honestly, I think that most Flybe bases will see a reduction in services over the next couple of years. BHD and IOM will probably suffer the least, given that there are no viable alternatives to air transport. I wouldn't be surprised if there was a slight shift towards the European leisure market, with reduced frequencies on GB domestic routes, especially those without codeshares.
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