PHOTO
Strong air travel growth continues in May as load factor rises to 2019 levels, IATA said an noted Middle Eastern airlines saw a 30.8% traffic increase compared to the same period last year.
For Middle Eastern airlines, capacity climbed 25% and the load factor pushed up 3.6 percentage points to 80.2%. The region is leading the recovery with May traffic at 17.2% above 2019 levels.
Total traffic in May 2023 (measured in revenue passenger kilometres or RPKs) rose 39.1% compared to May 2022. Globally, traffic is now at 96.1% of May 2019 (pre-pandemic) levels.
Domestic traffic for May rose 36.4% compared to the year-ago period. Total domestic traffic in May was 5.3% above the May 2019 level. This is the second month in a row domestic traffic has exceeded pre-pandemic levels.
International traffic climbed 40.9% versus May 2022 with all markets recording strong growth, led once again by carriers in the Asia-Pacific region. International RPKs reached 90.8% of May 2019 levels, with Middle East and North American airlines exceeding pre-pandemic levels.
The total industry load factor rose to 81.8%, led by North American carriers at 86.3%.
“We saw more good news in May. Planes were full, with the average load factors reaching 81.8%. Domestic markets reported growth on pre-pandemic levels. And, heading into the busy Northern summer travel season, international demand reached 90.8% of pre-pandemic levels,” noted Willie Walsh, IATA’s director general.
“People need and love to fly. The strong demand for travel is one element supporting a return to profitability by airlines. In 2023 we expect airlines globally to post a $9.8bn net profit. It’s an impressive number, particularly after huge pandemic losses.
“But a 1.2% average net profit margin is just $2.25 per departing passenger. As a return, that is not sustainable in the long-term.
Moreover, it appears that, while the pandemic has changed many things in aviation, it has not righted aviation’s famously unbalanced value chain. The latest indication came last week as European airports announced a $7bn collective profit in 2022.
In comparison, IATA estimates that European airlines made a $4.1bn profit for the same year.
“We don’t begrudge any business hard-earned profits. But this does raise an interesting question. Is airport economic regulation effectively defending the public interest when a monopoly supplier (airports) can generate seemingly much healthier returns than the competitive businesses (airlines) they supply? Governments should at least take a look,” Walsh said.
© Gulf Times Newspaper 2022 Provided by SyndiGate Media Inc. (Syndigate.info).For Middle Eastern airlines, capacity climbed 25% and the load factor pushed up 3.6 percentage points to 80.2%. The region is leading the recovery with May traffic at 17.2% above 2019 levels.
Total traffic in May 2023 (measured in revenue passenger kilometres or RPKs) rose 39.1% compared to May 2022. Globally, traffic is now at 96.1% of May 2019 (pre-pandemic) levels.
Domestic traffic for May rose 36.4% compared to the year-ago period. Total domestic traffic in May was 5.3% above the May 2019 level. This is the second month in a row domestic traffic has exceeded pre-pandemic levels.
International traffic climbed 40.9% versus May 2022 with all markets recording strong growth, led once again by carriers in the Asia-Pacific region. International RPKs reached 90.8% of May 2019 levels, with Middle East and North American airlines exceeding pre-pandemic levels.
The total industry load factor rose to 81.8%, led by North American carriers at 86.3%.
“We saw more good news in May. Planes were full, with the average load factors reaching 81.8%. Domestic markets reported growth on pre-pandemic levels. And, heading into the busy Northern summer travel season, international demand reached 90.8% of pre-pandemic levels,” noted Willie Walsh, IATA’s director general.
“People need and love to fly. The strong demand for travel is one element supporting a return to profitability by airlines. In 2023 we expect airlines globally to post a $9.8bn net profit. It’s an impressive number, particularly after huge pandemic losses.
“But a 1.2% average net profit margin is just $2.25 per departing passenger. As a return, that is not sustainable in the long-term.
Moreover, it appears that, while the pandemic has changed many things in aviation, it has not righted aviation’s famously unbalanced value chain. The latest indication came last week as European airports announced a $7bn collective profit in 2022.
In comparison, IATA estimates that European airlines made a $4.1bn profit for the same year.
“We don’t begrudge any business hard-earned profits. But this does raise an interesting question. Is airport economic regulation effectively defending the public interest when a monopoly supplier (airports) can generate seemingly much healthier returns than the competitive businesses (airlines) they supply? Governments should at least take a look,” Walsh said.