CAPA and UATP release CAPA/UATP Americas Airfare & Aviation Report: Aviation Travel Edition

Press Release

CAPA and UATP are pleased to announce the launch of the CAPA/UATP Americas Airfare & Aviation Report: Aviation/Corporate Travel Edition. The report is the first in-depth report in the North American aviation industry, covering capacity and airfare benchmarks for the top 10 routes in the US and Canada. The report includes specialised airfare benchmarking analysis utilising fare data from UATP, complemented by aviation insights from CAPA.

Launching the report at the CAPA Americas Aviation Summit before some 220 aviation industry leaders, CAPA Executive Chairman Peter Harbison said, "Monitoring industry performance by regular comparisons of fares, against the context of broader developments, is an invaluable tool for airlines, airports and all those affected by air travel."

  • The CAPA/UATP Americas Airfare & Aviation Report provides in-depth analysis of capacity and airfare benchmarks for the top 10 routes in the US and Canada.
  • The report highlights significantly lower fuel costs driving record profitability for North American airlines in 2016, but pricing softness remains a concern.
  • Ticket prices declined by an average of 15.25% in 4Q2015 compared to the same period in 2014, with the largest declines seen on Chicago O'Hare to New York and Los Angeles to Dallas routes.
  • Despite record profits, negative passenger unit revenue growth and capacity expansion plans are impacting valuations of North American airlines.
  • Investors remain skeptical about the durability of North American airlines' business models and their ability to withstand industry shocks.
  • The report suggests that the dichotomy of record profits and investor trepidation is likely to persist in the North American market, potentially affecting valuations in the future.

"CAPA is delighted to join with UATP in this milestone report. We hope it will prove useful for industry and stakeholders alike," he said.

UATP President and CEO Ralph Kaiser, commenting on the release of the report, said: "UATP is pleased to be partnering with CAPA to provide fellow aviation industry members with a wide range of important industry data; we look forward to sharing it with our airline network.

Key conclusions of the Americas Airfare & Aviation Report: Aviation/Corporate Travel Edition report included:

  • Significantly lower fuel costs should again drive record profitability for North American airlines in 2016, but pricing softness remains a looming threat as every carrier operating in the region plans capacity expansion;
  • Data provided from UATP showed an average decline of 15.25% in ticket prices during 4Q2015 as compared to 4Q2014. The largest pricing movements were seen on Chicago O'Hare to New York (La Guardia) with a fall of 27.04%, followed by Los Angeles to Dallas with a decline of just over 25% though core trunk routes remained steady;
  • The planned increases in capacity, coupled with negative passenger unit revenue growth that is projected to last through at least 1H2016, are driving down valuations of North American airlines even as those companies are posting record profits;
  • Investors remain unconvinced airlines operating in North America have truly transformed to build durable business models capable of withstanding the inevitable exogenous shocks that rattle the industry;
  • The dichotomy of record airline profits and sustained investor trepidation is likely to linger in the North American market for the foreseeable future. With no frame of reference to ensure those companies have an ability to sustain their profitability, valuations could continue to suffer.

The 49-page report is now available for download at https://centreforaviation.com/UATPreport.

For more information, please contact Blake Moore, Industry Analyst, CAPA on bmoore@centreforaviation.com

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ABOUT CAPA - Centre for Aviation

Established in 1990, CAPA - Centre for Aviation is the leading provider of independent aviation market intelligence, analysis and data services, covering worldwide developments.

Understanding aviation markets is our great strength and passion. Providing our CAPA Members, clients and partners with an unparalleled level of expertise and insight is our business. We offer an extensive range of information services developed by analysts covering the entire spectrum of commercial aviation.


UATP is a global payment solution owned and operated by the world's airlines and accepted by thousands of merchants for air, rail and travel agency payments. UATP connects airlines to Alternative Forms of Payment which can expand reach and generate incremental sales globally. UATP offers easy-to-use data tools, DataStream℠ and DataMine℠, which provide comprehensive account details to Issuers and Corporate Subscribers for accurate travel management.

Accepted as a form of payment for corporate business travel worldwide by airlines, travel agencies and Amtrak®; UATP accounts are issued by: Aeromexico; Air New Zealand (ANZFF.PK); Air Niugini; American Airlines (NASDAQ: AAL); Austrian Airlines; China Eastern Airlines (NYSE: CEA); Delta Air Lines (NYSE: DAL); EL AL Israel Airlines; Etihad Airways; Frontier Airlines; GOL Linhas aereas inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4); Hahn Air; Heli Air Monaco; Japan Airlines (9201:JP); Lufthansa German Airlines; Malaysia Airlines; Qantas Airways (QUBSF.PK); Qatar Airways; Shandong Airlines; United Airlines (NYSE: UAL) and WestJet.