Low cost airlines account for one in every five scheduled seats now offered around the globe - OAG
Low cost scheduled capacity increased by 9% year-on-year in Feb-2011 with "notable" growth in the Asia Pacific and Middle East regions, according to OAG. Low cost airlines account for one in every five scheduled seats now offered around the globe; a very slight increase year-on-year.
OAG stated that with the economic downturn, some major European LCC airlines have reduced the amount of winter flying, particularly within the EU. "The impact of this is most stark in the Irish market, where LCC capacity is down 10%; London Stansted has also been affected by the reduction in LCC flying – down 13%", it said. To partially compensate, EU LCCs have been entering non-EU markets. International capacity to Russia is +31%, Turkey is +79%, the Ukraine is +47% and Israel +156%.
"AirAsia continues to make its impact in the LCC sector of Asian capacity", while there is "increasing penetration of the African continent by the Gulf LCCs", said OAG.
LCC shares were mixed yesterday, let lower by South Africa's 1Time and higher by WestJet, whose shares soared 11.8% on its latest earnings report.
Selected LCCs' daily share price movements (% change): 09-Feb-2011