Jul 072013

MANILA, Philippines – Global passenger traffic grew at a faster rate of 5.6 percent in May amid the slowdown in the Asia Pacific region including the Philippines, data from the International Air Transport Association (IATA) showed.

IATA director general and chief executive officer Tony Tyler said air travel continued to expand at a healthy rate as overall demand rose 5.6 percent while capacity climbed 5.2 percent, pushing the load factor up to 78.1 percent.

“Global economic performance remains a concern, however, demand for air travel continues to expand. The primary driver is growing demand for connectivity to emerging markets,” Tyler stressed.

Data showed that May international traffic passenger demand rose 5.7 percent compared to the year-ago period amid a 5.6- percent rise in capacity resulting to a load factor of 77 percent.

International traffic of Asia-Pacific airlines rose at a slower pace of 3.7 percent in May compared to the year-ago period but this was more than offset by a 5.5-percent rise in capacity resulting to a 1.3-percent decline in load factor to 74.1 percent.

“The softness in demand is consistent with falls in business confidence in major Asian economies as well as a slowdown in trade growth momentum. In particular gross domestic product (GDP) growth in China did not meet expectations in the first quarter and business confidence has slipped to levels indicating contraction in manufacturing activity,” Tyler explained.

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He added that the strongest growth occurred in the emerging markets of Africa, Latin America and the Middle East.

He pointed out that European carriers recorded 5.6- percent growth on international services, suggesting that improving consumer and business confidence in Europe could be supporting stronger growth in air travel demand.

“The business environment has also improved compared to mid-2012 with some indications of easing weakness in the eurozone. It’s still a tough environment, but there are some reasons for optimism in the second half of the year,” he said

Middle East carriers had the strongest year-on-year traffic growth for any region at 11.7 percent, followed by African airlines with 9.8 percent, Latin American airlines with 7.9 percent, and North American airlines with three percent.

On the other hand, domestic demand rose 5.6 percent driven primarily by markets in Asia, particularly China, with capacity rising 4.5 percent and load factor at 79.9 percent.

China’s domestic market jumped 13.4 percent, followed by Japan with 5.9 percent. US traffic climbed 2.8 percent in May while Brazil demand rose 4.3 percent and India at 3.5 percent.

Tyler said demand for air travel continues to be strong despite less-than-robust economic indicators in some key markets, demonstrating the importance of air transport.

IATA sees airlines booking profits amounting to $12.7 billion and revenues of $711 billion equivalent to a 1.8-percent net profit margin this year.

Jun 152013
China Airlines seeks CAB OK on higher fuel surcharge

MANILA, Philippines – China Airlines is seeking the approval of the Civil Aeronautics Board (CAB) to raise the fuel surcharge on flight tickets.  “Notice is hereby given that China Airlines has filed with the CAB a petition for authority to impose upward fuel adjustment on international passenger tickets,” the CAB said in a notice posted on its website. China Airlines, the CAB said, intends to raise the fuel surcharge to $32 from $30 for all passenger tickets originating from the Philippines. The fuel surcharge forms part of airline ticket prices to allow the carrier to recover the cost of fuel. Fuel accounts for the bulk of an airline’s operating costs. The International Air Transportation Association’s (IATA) price monitor showed that jet fuel price reached $114.3 per barrel as of May 31. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The jet fuel price as of May 31 is 1.5 percent higher than in the previous month. Compared to a year ago though, IATA’s price monitor showed the jet fuel price as of May 31 was lower by 2.9 percent. The CAB said the hearing for China Airlines’ petition is scheduled on July 9 at the agency’s office in Pasay City. China Airlines was established in 1959. It has flights to 106 destinations in 29 countries. The airline has 53 passenger jets and 21 freighters.

May 052013
IATA pushes single airport system for Phl

MANILA, Philippines – The International Air Transport Association (IATA) is pushing for the continued improvement of the operations of the congested Ninoy Aquino International Airport (NAIA) and the establishment of an alternative gateway within the metropolis. Albert Tjoeng, IATA’s assistant director of corporate communications for Asia Pacific, said the organization is supporting a single airport solution that is easily accessible from the city.  “The priority for Manila is to maximize the effective capacity and throughput from the existing facilities.  IATA has provided guidance to the authorities in this regard, such as building rapid exit taxiways and better slot management. But there is a need to develop a long term solution to the airport needs of the Manila area,” Tjoeng said in an e-mail. Transportation Secretary Joseph Emilio Abaya earlier said Malacañang is carefully studying three options including the possibility of shutting down and selling NAIA to reach a decision on whether the Philippines would adopt a single or twin airport system. Abaya said the first option involves a single airport system wherein the government would shut down and sell the congested NAIA and develop the Clark International Airport in Pampanga. The second option, he revealed, involves dual system wherein the government would develop Clark and at the same time maximize the operations of NAIA until 2025 while looking for an alternative site for a new airport that would be 25 kilometers or 30 minutes away from the existing gateway. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The DOTC Read More …