Jet2.com announced (06-Dec-2011) plans to expand its Newcastle base with its Newcastle-based fleet to be expanded to six and its network from Newcastle to 27 with four new destinations from May-2012. The airline’s renewed focus will add the potential for an extra 80,000 passengers p/a with total seat capacity increased to over 600,000 per year. The carrier currently serves 23 destinations from Newcastle and will add Reus (twice weekly from 01-Jun-2012), Bodrum (weekly from 04-Jun-2012), Rome (twice weekly from 31-May-2012) and Venice (three times weekly from 31-May-2012) to its network from 31-May-2012 - see Route Changes Table for more information. There will also be extra frequencies on services to destinations including Faro, Menorca, Malaga, Cork, Prague and Krakow. The carrier said over 100 new jobs will be recruited over the coming months to service the expansion plans and additional capacity, covering ground staff, cabin crew, flight crew and engineering roles. The expansion comes on the back of a record summer for Jet2.com at Newcastle Airport. The carrier handled half a million passengers at the airport, marking a 56% year-on-year increase. The carrier has handled over 2.1 million passengers from Newcastle since its launch at the airport six years ago. [more - original PR]
Jet2.com to expand its Newcastle base
You may also be interested in the following articles...
Jet2.com: LCC airline's summer may be cooled by new Boeings, despite parent group's profit leap
Jet2.com is more summer-biased than almost any European airline, in spite of a capacity cut last summer. This reflects its strong leisure focus and its interdependence with the tour operator Jet2holidays. In the year to Mar-2016 Jet2holidays supplied 40% of the UK LCC's passengers, up from 17% in FY2013, since when it has been responsible for all of the airline's traffic growth.
Dart Group owns and runs both Jet2.com and Jet2holidays as the single business segment Leisure Travel (95% of group operating profit). The underlying operating profit of the Leisure Travel segment more than doubled for the year to Mar-2016, reaching the highest margin since FY2009, thanks to yield growth and increased sales of higher-end package holidays.
Strong advance sales insulate Jet2.com and Jet2holidays from the impact of Brexit in the short term. Nevertheless, their strong dependence on summer leisure demand exposes them to any volatility that may result from growing geopolitical and macroeconomic risks. Moreover, an order for 30 new Boeing 737-800s marks a departure from Jet2.com's strategy of buying and operating old aircraft that are close to being fully depreciated. This may increase the pressure on the airline to deploy its assets on a more year-round basis.
Turkish Airlines and Pegasus to take unprecedented capacity decisions as Turkey air traffic slumps
Until 2014 Turkey was one of the most reliably fast-growing air traffic markets in Europe. In 2015 passenger numbers levelled off, and in 2016 traffic is set to decline. The impact of geopolitical events, including a series of terrorist attacks, the civil war in neighbouring Syria and the failed coup attempt in Jul-2016, has weighed heavily on demand for international travel to/from Turkey.
Foreign airlines switched capacity away from Turkey in summer 2016, but the country's two largest operators – Turkish Airlines and Pegasus Airlines – continued to grow. However, following years of double-digit growth by both, Turkish Airlines and Pegasus Airlines are taking unusual steps this winter. According to data from OAG, Turkish looks set to implement year-on-year capacity cuts, while Pegasus appears to be planning flat capacity for the period from Nov-2016 to Mar-2017. It seems likely that both airlines will again cut their growth targets for 2016.
Moreover, Pegasus is seeking wet-lease customers for six of its current fleet of 73 aircraft. Perhaps more significantly, Turkish is to reschedule 165 aircraft deliveries planned for 2018-2022, cutting its planned fleet size in 2021 from 439 to 400.