The crisis-hit global aviation industry has started to heave a sigh of relief from the travel slump as passenger traffic demand rose by 6.4 per cent in the first month of 2010 as against the same period last year, the International Air Transport Association(Iata) reported on Tuesday.
Middle East airlines, which have remained resilient to the crisis, posted the highest revenue passenger kilometre (RPK) of 23.6 per cent in January followed by carriers in Latin America (11 per cent), Asia-Pacific (6.5 per cent) and Africa (6.3 per cent), according to
Iata statistics.
Passenger demand in Europe and North America likewise managed to record slight gains of 3.1 per cent and 2.1 per cent, respectively.
Slapped with the combined forces of the global financial crisis and travel scare due to the H1N1 flu pandemic, the airline industry in 2009 posted historic losses that wiped off nearly three years of growth.
In an official statement, Giovanni Bisignani, Iata’s director general and Chief Executive Officer, is optimistic that the “demand is moving in the right direction.”
Load factor or the measurement used by airlines in gauging aircraft capacity utilisation surged to 75.9 per cent in January, slightly higher than the 72.2 per cent posted in the first month of 2009. Cargo load factor was 49.6 per cent, which also increased from the 40.1 per cent recorded a year ago.
While the figures may be promising, Bisignani warned that the industry is not out of the woods yet.
“We can start to see the future with some cautious optimism, but better volumes do not necessarily mean better profits. Passenger yields are still 15 per cent below peak. And we expect 2010 losses to be $5.6 billion (Dh21 billion),” the Iata chief said on Tuesday.
UAE airlines continue to take off
The Middle East, particularly carriers based in the Gulf region, have attracted international attention as it posted an 11.2 per cent growth in passenger demand in 2009 – the only region to show significant gains.
Backed by petrodollars, regional carriers continued to expand their fleet and network even at the height of the crisis when other airlines, especially those in North America, have been struggling to stay afloat.
In the UAE, major players Emirates and Etihad have been active in expanding their overseas network and upgrading their fleet.
Last week, for instance, Emirates Chairman Sheikh Ahmed Bin Saeed Al Maktoum confirmed reports that the Dubai-based carrier will push through with plans to purchase ten additional aircraft from Boeing and Airbus. Emirates, which has the youngest fleet of aircraft in the global industry, currently operates 146 aeroplanes including eight superjumbo A380s.
Etihad, meanwhile, has invested $750 million (Dh2.8 billion) in the improvement of its workforce, fleet and in-flight service and planning systems as announced in the Dubai Airshow last October.
UAE airports have also remained busy despite the crunch. The Dubai International Airport registered 3.86 million passengers in the first month of 2010, posting a double-digit increase of 17 per cent from the 3.30 million passengers noted in January 2009.
Neighbouring Abu Dhabi International Airport, meanwhile, reported that 903,000 passengers used their facility in January, up by 11.2 per cent from 812,000 passengers in the same period last year.
Gulf airports expanding
The Centre for Asia Pacific Aviation reported recently that Saudi Arabia’s General Authority of Civil Aviation will invest $667m in the construction and expansion of 23 new and existing domestic and international airports in the kingdom, enabling the facilities to handle over nine million passengers annually.
Oman has also been keen on keeping up with the rest of its GCC neighbours as it awarded on February 25 a $105m contract to Muscat-based construction firm Galfar for the development of its Ras Al Hadd Airport.
Likewise, Qatar has invested about $1bn for the construction of the New Doha International Airport, which is scheduled to open by 2012 and expected to handle over 24 million passengers a year. The passenger volume is seen doubling to 50 million when the facility becomes fully operational by 2015.
Consider also reading:
Costly fuel means more woe for airlines in 2010: IATA
Iata revises loss forecast for Middle East aviation
Global air travel improving, but remains fragile: Iata
Middle East aviation dodges 2009 turbulence
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