Air Service Development Insights, Data, Analysis & Commentary from a fresh perspective – August 7th 2024
Recent financial market turmoil may be reflecting what some airlines have been seeing for some time – economic challenges, with consumers pulling back on spending in some markets, making trading conditions very tough in the months ahead. This month’s earnings review and release of quarterly, half-year or annual results will be telling for how airlines/airports have performed in the recent period, and a closer lens on the near future.
Capacity in a number of domestic markets is still not back at 2019 levels, however the recent run-up in demand from passengers has been pleasingly better than projected – but not all markets are the same, and this month we take a specific look at the Japanese outbound market.
Over recent months, global air cargo volumes have been improving – but as the financial markets continue to be in a state of flux over the past week, that may be tempered – as IATA also reports softening forward passenger demand.
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DATA Insight: Is the Japanese outbound market recovery not occurring until 2025?
Whilst the Japanese government finally removed all remaining COVID restrictions in April 2023, Japanese international outbound travel has been slow to resume, compared to other markets. Whilst some traditional markets expected to see a quick rebound, from the snapshot below, there clearly is a long way to go before some of these key markets do recover.
In recent months, there have been a number of airline failures and much has been said regarding a lack of competition resulting in large step-ups in airfares on sectors where no or little competition exists. Clients that abide by strict data collection methodologies, that are meticulous in their collation and presentation tend to find airline partners most receptive to analysis of airfare pricing strategies – and adapt them accordingly. Equally, data collation of this information (sometimes, which can be highly emotive, and from uninformed sources or only personal experience) can also be used to compare other markets and either allay or confirm community or stakeholder concerns – for what can be a prickly topic. Let us know if airfares are a point of contention, or discussion, that you’d benefit from being more informed about, from the analysis we do, for a range of clients already.
2025 RoundTable: NEWCASTLE, NSW, AUSTRALIA – formal announcement soon!
For those that could not attend the Napier/Hastings RoundTable in Hawkes Bay in June…. here’s a taste of the learning, discussion, networking and experiences had https://youtu.be/bEMYzj9YYgc It was a slice of heaven! Or click on the pictures below.
Insightful Aviation News In Recent Days
Asia Pacific, Middle East, Europe & beyond
- European airline results make for ‘depressing reading’, says Air Astana boss – 6 Aug
- United first to buy Sustainable Aviation Fuel (SAF) for O’Hare Airport, Chicago – 6 Aug
- Pilots to choose their own routes to international cities in change coming to airlines – 6 Aug
- Cathay Pacific seeks growth by boosting regional links with ASEAN partners – 5 Aug
- IAG Backs Off: Is this the End for Air Europa? – 5 Aug
- BA Owner IAG Eyes TAP Air Portugal For Takeover After Abandoning Air Europa – 5 Aug
- Airlines suspend flights to Israel as tensions mount – 5 Aug
- Philippine Airlines COO hints at large aircraft order amid rising demand – 5 Aug
- American Airlines boosts European & Asian cargo capacity with summer schedule – 5 Aug
- Air NZ becomes first big carrier to drop climate goal – 30 July
