North American carriers report weak Asia Pacific traffic in Aug-2009
You may also be interested in the following articles...
Air New Zealand defends Australia-USA transit market as Qantas plans further USA growth with 787-9s
Air New Zealand is turning up the volume. For years the airline had a tidy, under-the-radar business carrying transit passengers between Australia and the US over its Auckland hub. Air NZ is now directly targeting the Australia-USA market with a sales and marketing push that includes an advertising campaign called "Better Way to Fly". CEO Christopher Luxon said in a statement that "capturing just a little bit more of that market would see hundreds of thousands more Aussies flying with us to North and South America...Many Australian travellers still think of us as a trans-Tasman carrier and that’s a perception we’re determined to change."
The shift that Air NZ envisages is being sought now – and not five or even 10 years earlier – largely because of external factors and competition. Air NZ's marketing may suggest an opportunistic push, but the reality is Air NZ is on the defensive. In the Australia-Americas market competitors have lowered their costs, adding city pairs, product improvements and significant capacity growth. 2017 and 2018 are expected to mean even more growth as a resurgent Qantas adds 787-9 services between Australia and the US, and in particular – to Dallas.
North American airlines reduce CASK in 2015 thanks to lower fuel, but ominous labour cost trends
North America’s large major global network airlines enjoyed significant unit cost reductions for the full year 2015, according to CAPA's CASK Database, as average fuel cost per barrel remained at record lows for most of the calendar year. The decline in fuel costs in some instances helped to offset a challenging apparent trend in increasing salaries, wages and benefits, and profit-sharing expense.
Favourable fuel cost trends for those airlines should continue into 2016 as fuel costs per barrel for both WTI and Brent Crude are projected to fall year-on-year compared with 2015. For what forecasts are worth, fuel prices are projected to begin climbing in 2017; however, prices will remain far below 2014, when prices averaged over USD90 per barrel.
Falling full costs have helped lower the unit cost trend line year-on-year for global full service airlines, but, along with fuel cost inflation starting in 2017, some North American global network airlines will also face rising labour costs. Delta is in the process of pilot negotiations, United’s has agreed up to 31% increases for its flight attendants and is still in negotiations with its mechanics. Depending on the outcomes of the pilot negotiations and mechanics votes, Delta and United will face inflationary labour cost pressure during the next two years.