April 25, 2014
This week in travel stats saw the release of some less encouraging signs for the air travel industry as data showed slower profit growth in the first quarter of 2014 and a decline in customer satisfaction.
Airline Profits Grow More Slowly in First Quarter of 2014
According to a survey from the International Air Transport Association (IATA), slightly more than half of respondents indicated an improvement in profits in the first quarter of 2014 versus the same time a year ago. The proportion of respondents experiencing a fall in Q1 profits, however, rose rose to 30%, compared to 25% in the January survey, bringing the rate of improvement in Q1 down compared to Q4.
Airline Satisfaction Index
The American Customer Satisfaction Index (ACSI) is now available for the first quarter of 2014. Here’s how the airlines are stacking up.
via The Week in Stats: A Rougher Week for Airlines and Digital Marketing Tips | Travel Agent Central.
Geneva – The International Air Transport Association (IATA) announced that demand for air travel recorded another solid month of growth in July. Overall revenue passenger kilometers (RPKs) were up 5.0% compared to July 2012. All regions were up year-on-year, with emerging markets recording the strongest increases. Capacity rose 5.5% on the previous July, ahead of demand, and industry load factor dropped 0.4 percentage points to 82.4%.
Although July’s 5.0% performance was not as strong as June’s (6.1%), this likely reflects both a market correction in line with prevailing economic conditions as well as the impact of reduced travel in markets observing the Ramadan period.
“Passenger demand continues to be strong. But the story of emerging markets driving growth as developed economies stagnate could be shifting. We are still expecting growth of 5% this year. How that growth is achieved, however, appears to be at a turning point,” said Tony Tyler, IATA’s Director General and CEO.
“The emergence of the Eurozone from an 18-month recession provided the biggest boost to traffic over recent months. In contrast, the deceleration of the Chinese economy has been a dampener on air travel, with weakness showing up throughout emerging Asian markets. The price of oil, a huge cost item for airlines, is tracking political tensions in the Middle East.