Some of the key highlights from the analysis include:
– Operating revenues for international scheduled traffic rose by 7.1% in 2000, in line with the 6.9% growth in revenue for the whole of the IATA Member Airlines over the period (published in IATA`s June 2001 edition of World Air
Transport Statistics).
– Growth in operating expenses, 6.2% (again in line with the 6.9% increase in the IATA Member Airlines operating expenses) meant that the operating result for the total sample of airlines was US$4.1bn in 2000
– An increase of 8.2% in total international scheduled traffic exceeded an increase in total capacity by 2.3 points. As a result the total weight load factor increased 1.4 points to 66.7%. Thus, despite rising fuel costs and the overall unit yield (per RTK) for the carriers falling by 1.0% (driven by most participating carrier currencies weakening against the US dollar), the net result improved by over 100% to US$2.3bn.
– Passenger revenue was up 6.1% to US$81.3bn, and traffic (Revenue Passenger Kilometres) was up 8.3% over 1999. Capacity (Available Seat Kilometres) increased by 4.6%, and thus the passenger load factor was able to increase by 2.6 points to 74.0%. The margin between the passenger load factor and the breakeven weight load factor (before interest) grew to 10.0 percentage points in 2000.
– A 7.8% increase in cargo Revenue Tonne Kilometres (RTKs) and a 6.7% increase in cargo capacity (Available Tonne Kilometres), contributed to a 1.4 point increase in the overall weight load factor achieved, to 66.7%.
– The report includes a detailed analysis of operating expenses and the drivers of increasing costs, as well as the changing distribution of total expenses between direct and indirect expenses, unit costs and unit costs per ATK. The report also includes analysis of the effect of exchange rates on unit costs and yields per reporting country, and for the industry as a whole.
– The report includes an extensive look at passenger and cargo operations by 27 route areas, with commentary and figures presented to show the profitability of each route area.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
