INTRA-EUROPEAN AIRLINES REPORT STABLE 4% GROWTH

14/01/2005

Airline members of the European Regions Airline Association (ERA) have reported traffic stability over the first nine months of 2004 and better utilisation of turbofans.

Increases were apparent, with scheduled passenger growth reaching 4% and revenue passenger kilometres (RPKs) 5.6%. Capacity was also up 5.1% (ASK) while a steady improvement in load factor continued throughout the year, recording a one point increase to 60.8% for the nine month period.

However, the reduction in traffic in 2003 caused by the Iraq War will have caused some minor distortion, says the Association.

A fall in the number of total hours flown indicates the greater use of turbofan aircraft with shorter flight times. Increased use of turbofans is also evident from the growth in monthly utilisation, on average 11 hours per month more than 2003. The ERA passenger fleet now comprises 53% turbofan aircraft.

Increased load factors, together with the use of larger aircraft explain the decrease in landings without an associated drop in passenger numbers.

Director General Mike Ambrose says: “Stability creates confidence, which leads to investment and, ultimately new jobs. Regulators must understand that, at a time like this, cost containment is vital.”