According to IATA, the Air Transport Industry is recovering at a slow pace. The International body has revealled that Global air travel demand is stabilizing. Passenger traffic in September was 0,3 per cent up compared to the same period last year. Cargo volume was down 5.4 per cent. However, load factors have increased, reaching post recession levels (77,1 % for PAX and 50,8% for Cargo). Robusness of load factors is mainly explained by lower yields (-14% in Economy Class, -18% in Business, -20% in Cargo) due to fares reduction policies adopted by airlines to stimulate falling demand during the recession. As oil prices remain relatively high, airlines are constrained to adjust their capacity, hence reducing Aircraft Utilization and productivity, and raising unit costs.
Source: Air Transport News
Hi Francis,
ReplyDeleteIt seems we're seeing the end of the crisis. But i wonder if these magic CEOs will be wise enough to not start increasing capacity as potential conflicts still loom ahead.
Hi,
ReplyDeleteAirlines Board should certainly exercise caution, but what if the demand side of the equation is strong enough to sustain capacity growth as it figures suggest it? the US are emerging from recession with a 3.5 per economic growth in last Q. Constraining capacity could impact their bottom lines.