The older population drove demand in the airline industry last month, as over-65s recorded the largest increase in spending, new figures show.

Consumer spending on airlines was up by a massive 170% last month compared to December, according to new figures from AIB, while this number jumped to 256% for those aged over 65.

They were followed closely by those between the age of 45 and 64, whose spending on airlines was up 241%, as the January blues set in. All age groups recorded an increase in airline spending, with those between the ages of 25 to 34 recording the smallest increase, up 87% on the previous month.

The data was compiled from more than one million card transactions carried out by Irish consumers online during January 2022. The jump in airline spend was an exception last month.

Overall, spending was down 15% in January when compared with the previous month, with consumers spending an average of €73million a day throughout the month.

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Spending on consumer goods was down, with clothing spend down 48%, groceries down 23%, electronics down 33%, hardware down 11%, homewares down 45% and health and beauty down 27% on December.

The amount spent in the hospitality sector was also down on December, with spending in pubs down 24%, spending in restaurants down 18% and spending in hotels down 12%.

Those aged between 45 and 54 recorded the biggest drop in spending in January, down 17%, and those under the age of 25 recorded the smallest drop, down 6%. Meanwhile, those from Roscommon recorded the biggest drop in spending, down 18%, while those in Dublin recorded the smallest drop, down 14%.

AIB's head of SME banking, John Brennan, said it would be expected that spending will pick up as consumers start to return to pre-pandemic behaviours in the coming months, as we move further away from Covid-19 restrictions. 'January is a quiet month for consumers, having spent the month of December shopping for the Christmas break, buying clothes, presents and food,' he said.

'Combined with the temporary restrictions imposed, it is unsurprising to see a drop in spending across many sectors. But January is also known for holiday planning and this is evident from the increase in spending with airlines, which is up 170% and is no doubt welcomed by the airline sector given the turbulent two years it has experienced.'

'Our insights clearly show that the Irish consumer is planning holidays and short breaks.'

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