Low Cost Airlines Flying High as Global Aviation Growth Falters

¦ Budget airline capacity doubles in five years
¦ Zero growth for world air transport
¦ Middle East soars as US slumps
¦ High fuel prices curb full-service airlines

The number of low-cost airline flights has more than doubled in just five years, according to latest figures released from OAG. This month, budget airlines plan to operate more than 300,000 flights, compared with 142,000 in April 2001.

The volume of low cost flights worldwide is 13 per cent higher than the April 2005 figure, which in turn was 19 per cent higher than in April 2004. Around 14 per cent of all flights are operated by low-cost carriers, which also account for 17 per cent of all seats on sale worldwide.

Overall, the number of worldwide flights total remains static at around 2.3 million, although the number of seats on sale this month is two per cent higher than in April 2005, at nearly 226.3 million.

The figures are revealed in OAG’s latest Quarterly Airline Traffic Statistics, a regular snapshot of airline activity around the world. OAG collates data from more than 1000 scheduled airlines, on a daily basis, to give an overview of anticipated travel demand.

“The continuing high cost of fuel is clearly having a significant effect on the world’s air transport industry,” says Duncan Alexander, managing director of OAG Business Development. “The increased seat capacity, measured against zero growth in the number of flights on offer, suggests that airlines are attempting to force yields higher.

“Although fuel prices obviously affect all airlines, the budget carriers have lower cost bases and, because they are generally smaller than their full-service counterparts, they can react more quickly and effectively to market trends.”

Regional figures show that the Middle East’s aviation industry is outperforming the rest of the world by a significant margin. The number of flights to and from the region this month is 16 per cent higher than in April 2005, while the intra-regional figure is 13 per cent up. The number of Middle East low-cost flights has doubled since last year.

April 2006 sees a 13 per cent increase in flights to and from the Asia-Pacific region, while intercontinental services to and from both Europe and Africa are up ten per cent. Central and South America is showing a five per cent increase in the number of intercontinental flights, while the North American international total is three per cent higher.

The number of US domestic flights – which constitute by far the largest air transport market in the world – is six per cent lower than in April 2005.

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About OAG

OAG is an information management and distribution company specialising in travel and transportation.

OAG’s expertise is in managing large amounts of data and building applications and products to get that information into the hands of people who need it.

OAG holds a breadth of travel related content. It is best known for its airline schedules database, which holds flight details for 1,000 airlines and more than 3,500 airports. Every ten seconds a flight is updated on the OAG system.

OAG provides a broad range of products for business and consumer customers, available in virtually any way the customer wants it: Internet, PDA, mobile, digital and print.

OAG is a private company supported by over 400 staff with presence in Europe, America and Asia. To view OAG services visit www.oag.com, www.oagdata.com and www.oagcargo.com