The first three months of the new year are not normally a time airline managers look forward to. For most, it is the least profitable time of year, and something to be endured before the sunlit uplands of Spring and warmer weather entice more passengers and more revenue onto their aeroplanes. Old Father Time toys with them a little too, adding in an extra day of pain in February every four years with a chuckle; oh how the industry would rather have had last year’s extra day in June when they could have done something with it.
While we’ve commented in our last three fare articles about the general softening of fares around Europe across 2016 and 2017, performance appears particularly poor in March. However, much of this can be explained by the timing of Easter. In 2016, Easter Sunday fell on the 27th March. This year Easter Sunday fell on the 16th of April. Therefore, the March 2016 fares are slightly inflated above where they should be, and a direct comparison with 2017 isn’t doing justice to the full picture.
RDC, one of Europe’s leading aviation information businesses, today announced the launch of Airline Profitability into its online Apex platform. Powered by RDC’s proprietary yield and route economics data, Airline Profitability delivers powerful insight into airline route and network profitability. It is an essential tool for airports looking to make their airline relationships more profitable.
The expected consolidation of the LCC business in Europe hasn’t really happened. Indeed, recent moves by Europe’s majors will see more and more airlines try to turn themselves into LCCs, though whether they can achieve the L and the C and remain profitable is yet to be determined. Almost by definition, LCC will soon be a redundant term, as most international carriers flying routes within Europe will be styling themselves as LCCs, and thus one day they will all revert back to being merely Cs.
Fares fall 3.9% compared to last year, 6.5% in the UK