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Effects of the crisis in the airline sector

Effects of the crisis in the airline sector

According to an article published this month on oag.com, continuing woes in the US economy are influencing airline business, with worse-than-expected drops in capacity this winter as the number of domestic flights is on track to fall by almost 11% and its capacity by 9% in the 4th quarter of 2008 compared to a year earlier, according to the analysis that the OAG (Official Airline Guide) has carried out of the flight plans of the sector already published. The latest figures reveal that airlines around the world will offer 46.3 million fewer seats in October, November and December 2008, and 451,000 fewer flights.

21.4 million of the trimmed seats will correspond to the US domestic market, which is equivalent to 46% of the global decline; and a staggering 59% of the global drop in frequency with 265,000 fewer flights.

The OAG analysis takes into account all the future plans published by the airlines to date, to offer a comprehensive view of the activity planned by the airlines for the months of October to December 2008 with comparisons going back to the last ten years.

Flights and capacity in Europe are also showing cuts due to the downturn. Flight figures within Europe are currently 5% lower than in the fourth quarter of 2007, and seating capacity is 5.6% less compared to a 2.8% drop in previous analyzes a year ago. couple of month.

The first reports on Asia are not as bad as feared, but they are still worse than the global figure with a drop of 6.5% in terms of capacity and a decrease of 7.1% in the number of flights.

The effect of what is happening in the US and Europe is being observed in the change of transatlantic and trans-Pacific routes. In August, the OAG figures showed that both were experiencing some increase. The latest figures reveal a 2.9% capacity reduction for transatlantic routes, and a 3.1% drop for trans-Pacific routes compared to the previous nominal increase of 0.2% each year.

The impact of capacity cuts at airports around the world is high. OAG analysis reveals that 219 airports around the world are losing planned air services, compared to August's figure of 275. Of these, 33 are in the US (15% of the global total); 94 (43%) in the Asia Pacific region; and 45 (21%) in Europe.

Source: OAG

Video: Why Coronavirus Is Having a Bigger Impact on Global Airlines Than 911. WSJ (October 2020).