Intra-European carriers get bigger, faster

13/10/2005

In the face of intense competition from ‘low fare carriers’, intra-European ‘legacy’ carriers are reporting record performances for the first half of this year.  

Average scheduled passenger load factors for the first six months of 2005 reached 59.8%, the highest since figures were first collected by the 25-year-old European Regions Airline Association (ERA). June saw record average load factors of 64.8%. Airlines achieved these levels even while adding 5.3% more flights.

Scheduled passenger growth for the intra-European sector was strong at 5.6% for the period, compared with 4.8% for the first half of last year. Scheduled Revenue Passenger Kilometres (RPKs) grew at almost double last year’s rate, reaching 9.9% to June 2005 (5.4% to June 2004).

The result has been a substantial move across the sector to add capacity. The number of seats in the intra-European fleet grew by 5.3% while available seat kilometres (ASKs) went up by 9.3%. An increase in the average sector distance, which began to emerge in 2004, has continued with 549 kilometres being the average trip distance (up by 30 kilometres over the same period last year.)

This and a rise in average sector time to 1hr 14 minutes indicate an increased number of larger, faster turbofan aircraft in use, capable of handling longer routes. Such acquisitions are confirmed by the fact that 55% of the ERA fleet is now turbofan.

More flights have meant a slight increase in delayed flights. Intra-European airlines reported that 14.8% of flights were delayed, against 11.8% during the first half of 2004.

Having matched the low fares challenge, intra-European airlines are now trying to manage massive rises in fuel prices. ERA’s General Assembly is being used to examine the issue.