LONDONDUBLIN May 6 Reuters European airlines and hotel chains are seeing bookings recover to levels barely seen since the start of the COVID19 pandemic, led by demand for shorter trips, although longdistance travel remains on the ropes.

The pandemic led to international travel virtually shutting down as governments around the world curbed entry. However, the easing of curbs and bottledup travel demand have led to an abrupt upswing in short and mediumhaul trips.

There is a lot of pentup demand. People want to see their families and travel again, said Phil Seymour, president of IBA Group, a UKbased consultancy and aircraft valuation firm.

That echoes soaring domestic demand in the United States.

The big overlay is that air travel demand is back and it is back in a massive way, Sean Egan, Chief Executive of the EganJones Ratings Company, told the Airfinance Journal conference.

Challenges remain in the form of rising costs and staff shortages causing flights to be cancelled. Some airlines have promised more than they can deliver this summer, delegates warned. Even so, airlines expect a return to profitability.

British Airwaysowner IAG expects to be profitable from the second quarter onwards and for the year as a whole, it said on Friday. That39;s despite having to cut capacity in the first quarter to avoid disruptions. 

Premium leisure continues to be the strongest performing segment and business travel is at its highest level since the start of the pandemic, said…