With petroleum prices petulant once again this trend may not last. But for now, at least, OAG says seating capacity among the planet’s airlines increased year-on-year in February to a total of 285.7 million seats. That’s a 5 percent capacity increased compared to the same period last year.
That matters to seekers of cheap flights because, as a rule, as capacity grows airfares in affected markets decline. The problem in the current context is the rising price of jet fuel. That forces airlines to boost rates.
OAG says while the world as a whole saw more airline seats flying about, Central and South America actually witnessed 3 percent fewer. That’s because of Mexicana’s demise. The Brazilian aviation arena continues its boomtown buoyancy, expanding by 14 percent. OAG CEO Peter von Moltke cautions this may not continue, warning of possible “capacity consolidation.”
The fastest-growing air routes are to and from the Middle East, where the number of flights is up 13 percent. Von Moltke says “airlines such as Emirates, Etihad, and Qatar Airways (all of which fly to the United States) continue to increase flights.” Asia/Pacific area is hot. It too grew by 13 percent.
Seat capacity to and from Europe grew 11 percent over the past year.
So what about flights to and from North America? OAG says they remained pretty constant on a year-on-year basis, with just a slight increase in average seating capacity per flight.
“The world is moving again. After the biggest demand decline in the history of aviation in 2009, people started to travel and do business again in 2010,” says Giovanni Bisignani, Director General and CEO of the International Air Transport Association.
That’s good for consumers and airlines alike. The sticking point is the cost of powering all those airplanes. Rate hikes could be followed by seat capacity cuts to save more money.
Story by Jerry Chandler
