Peach CEO Shinichi Inoue stated the carrier’s income during the first six months of operation from Mar-2012 to Aug-2012 has “exceeded expectations”, according to a Nikkei report. He added that the carrier’s previously announced target of achieving profitability by 2014 could be achieved earlier, based on these results. As previously reported, Peach transported 604,103 passengers during its first six months of operations, with an average load factor of 79%, which according to Mr Inoue, exceeded the carrier’s target of 70% to 75%. Peach expects accumulated passenger numbers to exceed one million in Nov-2012.
Peach: profit target could be achieved before 2014, one million accumulated pax by Nov-2012
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CAPA global airline financial outlook
Operating margin to reach new high in 2016, but this may signal a subsequent downturn. CAPA’s global airline operating margin model indicates that the industry was more profitable in 2015 than it has been for almost five decades. Moreover, the model predicts that world airline operating margins will rise further above previous historic peak levels in 2016. These new levels of profitability are mainly thanks to the low oil price environment, coupled with strong demand growth in spite of global economic growth rates that are far from exceptional.
Much of the industry is also benefiting from a period of relative capacity discipline. New revenue sources may also be helping, although their role in airline profitability is still emerging.
The macroeconomic and geopolitical backdrops provide the main risks to this forecast. Beyond that, the biggest challenge for the industry will then be to try to sustain margin levels, rather than to allow a peak to be followed by a rapid downturn, as has always happened in the past. But downturns can play a positive role in industry development, possibly even stimulating consolidation.
Northeast Asia's outlook remains bright – and perhaps more so than before
A few years ago amidst the economic downturn it was Northeast Asia – with its main Chinese market – that was a strategic bright spot for aviation.