IATA released (19-Oct-2011) its Oct-2011 airline business confidence index, which showed airline confidence fell with expectations for profitability over the next 12 months down to levels last seen in 1H2009. According to IATA, this low level of confidence has in the past been consistent with the industry performing a little better than breakeven. Meanwhile, yield expectations have also declined, with 45% of those surveyed expect cargo yields to fall and airline confidence in passenger yield now at their lowest since early 2009. [more - original PR]
Airline profitability and yield outlook at its lowest since 2009: IATA
You may also be interested in the following articles...
LATAM and GOL: Excess capacity could threaten arrival of crucial recovery in Brazil domestic market
After two years of weak demand and pricing, some signs of stabilisation are emerging in Brazil; however the country’s two largest airlines are adopting an understandably cautious tone in their assessment of the operating environment. Although both LATAM Airlines Brazil and Gol have significantly reduced their domestic capacity during the last year and a half, both airlines have concluded that some excess supply remains in the market place. Fast-growing Azul has opted to slow its capacity growth in 2016, but Brazil’s fourth largest airline Avianca Brazil has continued growth in order to build its market share within the country.
LATAM Airlines Brazil also believes its performance on routes between the US and Brazil is improving, which is a similar conclusion drawn by US airlines operating between the two countries. For LATAM, the improved performance is offsetting some weakness on other long haul routes from its Spanish-speaking countries.
Neither airline has offered specific capacity guidance for 2017, but LATAM Airlines Brazil and Gol are likely to keep their supply restraint intact. Pricing in the domestic market has yet to stabilise, and competitive capacity actions will result in those airlines keeping their own ASK increases at bay in order to sustain a favourable supply/demand balance.
Capture untapped revenue opportunities using advanced analytics
Sabre Airline Solutions continues its year-long series focused on the need for a next-generation revenue management system. The four-part article series examines how Total Revenue Optimization (TRO) can be realized by implementing a revenue management solution that incorporates real-time data, portfolio integration, advanced analytics, and real-time decision support. The following is a preview of the series’ fourth article discussing the benefits of a revenue management system with portfolio integration.