Small Boost To Global Airlines Profitability

The combined net profit-margins of the global airline industry will rise to approximately $ 10.6 billion this year. This was announced by the International Air Transport Association (IATA) on Wednesday 20th of march.

New synergy as a result of consolidation and more efficient cooperation, improved economic prospects and more demand from the passenger and cargo market will spur the improved growth.

According to the IATA the majority of the profits will come from airlines from the Far East. Followed by North American firms and finally European airlines.

Read the full IATA press release >>

Airport Geography In Britain

A surfeit of small airports is not a sign of health. This was concluded by The Economist after a study of small and medium sized airports in Britain and their proximity to the population.

Read the complete article: Ahead in the clouds >>

Privatisation of Brazilian Airports

Airport passenger numbers in Brazil have doubled in a decade. And hectic growth is expected to continue. According to The Economist, Brazil is creaking at the seams. With public investment low, private money is needed fast to upgrade not just airports but roads and ports as well.

Read full story: Privatising Brazil’s airports: Fasten your seat belts >>

International Air Travel Rebounds in April

The International Air Transport Association (IATA) announced traffic results for April which showed a rebound in international markets with 16.5% growth compared to April 2010.

While this is exaggerated by the comparison to April 2010 during which European airspace was closed due to the volcanic ash crisis, international travel markets in April had grown to reach a level 7% higher than the pre-recession peak of early 2008.

Top line highlights include:

International: A 16.5% increase in passenger demand was met by a 16.8% increase in capacity. Passenger load factors fell slightly from 76.8% in April 2010 to 76.7% in April this year. International freight grew by 5.4% against a capacity increase of 12.3%, pushing the freight load factor down from 55.3% in April 2010 to 51.9% in April 2011.

Domestic: Domestic markets showed 4.7% growth over the previous year, outpacing a capacity increase of 3.1%, pushing the passenger load factor to 78.8%. Domestic freight markets showed a 9.3% fall in freight traffic against a capacity decrease of 1.0% resulting in an average load factor for the month of 26.8%.

System-wide: System-wide, passenger traffic grew by 11.9%, slightly ahead of an 11.5% capacity expansion pushing the system-wide load factor to 77.4%. Freight markets grew by 3.3%, against a capacity increase of 9.2%, dropping the system-wide freight load factor to 46.5% (compared to 49.1% for the same month last year). Full story..

Source: IATA

Airlines gear up for mergers

A new wave of massive mergers in the airline industry gleams on the horizon.

In Europe, British Airways and Iberia from Spain have signed an agreement to combine forces. The new alliance will become the second largest carrier on the continent, after KLM-Air France and Lufthansa, and cater to 58 million passengers.

In America, United Airlines and US Airways are discussing possibilities to merge. The new airline would be one of the largest in the world, and the second U.S. carrier after marketleader Delta Airlines.

The two merging plans seem to indicate a new shift in global aviation towards increasing economies of scale. Underlying reasons might be the rise in kerosene prices and the worldwide economic recession.

(c) GLOCONOMY 2010