The Global air transport market has been affected by the weak global economic performance. The airline share prices, according to the Bloomberg global index lost further ground in December 2011, falling by 3%. Nevertheless, airlines have done quite well in Q3, with a sample of 61 carriers reporting $5 billion in net profits, according to the International Air Transport Association (IATA). Significant differentiations have been observed between different regions. This can be attributed to the fact that currently European Union is harder hit by the economic crisis, thus creating a volatile economic climate in the continent.
According to the statistic data provided by IATA global passenger load factors have fallen sharply in November 2011 to 76.3% from 78.5% that it was in October of the same year. As it is already mentioned regional differences were sharp. While North American carriers saw a 0.8% decline in travel, carriers in the Middle East experienced a 10.1% increase, followed by 9.0% for Latin American airlines.
In order to have a better understanding of these regional differentiations we can have a look of international travel markets of different regions.
In North America airlines saw international demand shrink by 1.2% on November 2011 compared to the same month of the previous year, roughly in line with a 1.0% reduction in capacity. European Airlines, demand grew 4.9% compared to the November of 2010 while capacity increased by 5.3%. This was definitely a steep change from the 6.4% demand growth recorded for October 2011.
Latin America and Middle Eastern carriers recorded the strongest year-on-year growth at 8.8% and 9.8% respectively. For both regions capacity surpassed the growth in demand with the Middle Eastern carriers growing their capacity by 10.4% and Latin American carriers by 11.4%.
In the Asia-Pacific region airlines experienced a 2.4% growth in year-on-year demand which is less than half the 5.4% growth in capacity, where as African carriers reported 2.6% growth in demand which is twice the 1.3% capacity expansion.
Epicos Newsletter Head Editor