Low-cost airlines around the world competed with Chinese carriers to lead passenger growth rates in 2006, and while the trend globally was for a continued slowing, overall results remain robust
Last year saw many airlines doing better at managing capacity than in previous upturns, with the result that while many have been adding seats, load factors have remained steady.
The Asia-Pacific continues its leadership of global passenger growth figures and although significantly down from the past year's 11% increase, traffic growth remained just above the historical 6% average. The figures were distorted somewhat by Malaysia Airlines' dramatic cut of 99 domestic routes. Japan Airlines also lost passengers as it pursued its own restructuring programme aimed at reducing capacity.
China's airlines continued to see phenomenal growth, mainly the result of huge domestic demand. China Eastern's overall 38% figure was grossly inflated by a 54% rise in home-generated passenger traffic, while China Southern, with more modest growth, is preparing a massive fleet expansion.
In Europe the picture is more varied. Almost all the major legacy carriers saw passenger growth of less than 10%, with the notable exception of TAP Portugal and THY Turkish Airlines, both of which have embarked on expansion strategies. Both are now part of the Star Alliance.
Low-cost carriers such as airBaltic, Norwegian and Spanair continued strong passenger growth. Bmi suffered increasing competition with rail link Eurostar on its European routes, contributing to the overall 10% reduction in passengers during the year. It has since decided to pull off the London-Paris route.
The fortunes of Latin America's carriers ranged from those of struggling Varig, where traffic fell by 54%, to Brazil's low-cost phenomenon GOL, which continued its thrust into new markets, backed by its recent success in gaining fifth-freedom rights between Argentina and Chile, and Chile and Peru.
In North America the restructuring goes on, reflected at Delta Air Lines and Northwest Airlines by significant capacity reductions as they struggle to control costs. Load factors have held steady and even improved slightly, raising hopes for entry into profitability in 2007.
North American low-cost carriers saw significant passenger growth with AirTran, Southwest, WestJet and JetBlue Airways all posting their now customarily healthy increases.
The regional sector was led by Air Canada's subsidiary Jazz, which increased its passenger numbers by 53% on the back of a 72% growth in capacity.
Source: Airline Business
