The International Air Transport Association (IATA) reported that full year 2011 passenger demand rose 5.9% compared to 2010, in line with long-term growth trends. In contrast, cargo markets contracted by 0.7% for the year; but recorded positive demand growth in December of 0.2%. Growth in demand lagged capacity increases at 6.3% (passenger) and 4.1% (cargo) putting downward pressure on load factors. The average passenger load factor for 2011 was 78.1%, down from 78.3% in 2010, while the freight load factor was just 45.9%, down from 48.1% in 2010.

“Given the weak conditions in Western economies the passenger market held up well in 2011. But overall 2011 was a year of contrasts. Healthy passenger growth, primarily in the first half of the year, was offset by a declining cargo market. Optimism in China contrasted with gloom in Europe. Ironically, the weak euro supported business travel demand. But Europe’s primarily tax and restrict approach to aviation policy left the continent’s carriers with the weakest profitability among the industry’s major regions. Cautious improving business confidence is good news. But 2012 is still going to be a tough year,” said Tony Tyler, IATA’s Director General and CEO.

Passenger demand for December rose 5.4% compared to the same month in 2010. But the trend since mid-year has clearly slowed, as travel markets react with a lag to the declines in confidence that weakened cargo in the second half of 2011. Comparisons with December 2010 are also distorted as severe winter weather in Europe and North America as well as strikes in Europe suppressed demand. December 2011 passenger demand was up just 0.7% over November while the load factor declined 0.2 percentage points. Freight capacity climbed 4.4% in December compared to December 2010. The freight load factor was just 46.1% for the month.

2011 Ends on a Positive Note Capacity, Economy Loom as Issues in 2012 is a post from: Aviation news - Planegrazy

• Air freight markets turned up at the end of 2011, with year-on-year growth in FTKs worldwide at 0.2% in December;
• Air travel also rose in December to a level 5.4% higher than the same month in the previous year, although the trend since mid-year has slowed;
• During the year as a whole, passenger travel markets performed well, given weak economic conditions in western economies – passenger traffic grew 5.9%;
• In international markets, European airlines posted the second fastest growth rates, behind the Middle East;
• For domestic travel, the emerging markets of Brazil, India and China all showed double-figure growth for the full year, while Japan declined 15.2% as a result of the earthquake in March;
• By December, however, the Japanese domestic market had recovered to levels 5% below pre-earthquake levels;
• Cargo markets contracted over the year by 0.7%, with Asia/Pacific declining most, by 4.8%;
• Load factors in passenger markets declined in Q4 as airlines added capacity, while cargo load factors increased slightly in December compared to November from the growth in traffic;
• With an improvement in business confidence in December and January, we are likely to see stabilization in air transport markets.

Air Transport Market Analysis is a post from: Aviation news - Planegrazy

• Airlines share prices rallied at year-end, but remain 30% down on the start of 2011. Financial markets continue to expect further downward pressure on airline profits;
• Airline profits worldwide in Q4 were down 55% on last year, but North American airlines in contrast to other regions improved performance;
• Cargo volumes appeared to stabilize at year-end, while air travel growth continued at a slower pace;
• Passenger load factors are starting to slip as aircraft deliveries push capacity growth above demand;
• Fuel prices remain high, though down on peak levels are up 14% on the year due to Asian demand and a squeeze in supply;
• Passenger yields were rising through Q4, largely to recover fuel costs, supported so far by high load factors.

Airlines Financial Monitor is a post from: Aviation news - Planegrazy

Of all potential accidents, airplane ones are amongst those that people least want to consider might happen to them; after all when it comes to flight related accidents, the majority will think of catastrophic scenarios such as plane crashes and collisions. However flight accidents can just as easily mean comparatively minor incidents such as falls, slips or spilt beverages, all of which will result in injuries which are unpleasant but unlikely to be life-threatening. When it comes to pursuing a claim for plane crash compensation in the event of suffering an injury during a flight, the situation is somewhat different from other types of negligence compensation cases – and in fact the laws governing flight accident claims are advantageous to those making a compensation claim.

When it comes to air travel, negligence claims are regulated according to the terms laid out in the Montreal convention, which is accepted in British law. This convention offers two significant benefits to those seeking to pursue a compensation claim following an illness, injury or death as a result of a flight accident, which are not available to those pursuing similar claims involving road travel accidents.

The first of these benefits is that the terms of the convention do not require those pursuing the claim to prove that the negligence of the airline company actually directly contributed to the illness, injury or death that has led to the claim. This is a major difference from other similar types of compensation case, where it is an absolutely necessary to prove not only negligence, but that this negligence led directly to the cause of the claim.

The second advantage in favour of the claimant that the convention lays out is that, if the illness, injury or death occurred during an international flight, the claimant has the right to choose whether to pursue the case in their own home country or in the one they were travelling to, or where the airline company is based – depending upon which of these countries offers a more favourable option for the claimant. If you feel that you have a legitimate case in the event of a flight accident it is best to contact a legal firm specialising in this area.

Flight accident compensation claims is a post from: Aviation news - Planegrazy

• The number of passengers travelling on premium seats increased slightly in November, by 0.6% compared to October;
• However, the level of premium travel has trended downwards, and is 2.6% lower than in May 2011 – the peak for the year;
• Economy class travel contracted in November, down 1.1% from October, but this is yet to impact the positive trend with economy markets growing 3.0% year on year;
• The share of premium travel in total travel still remains weak compared to the start of the year, and this seat class mix is not favorable for airline yields;
• In some markets, such as within Europe, business travel has continued but passengers have moved from premium seats into economy class, contributing to relatively robust economy growth;
• Weak world trade growth and business confidence indicators both suggest there will be little further growth in premium travel in the next few months.

Premium travel trending downward is a post from: Aviation news - Planegrazy

Freezing rain and snow continue to affect Alaska Airlines and Horizon Air operations, which forced the carriers to cancel 310 flights to and from Seattle by early evening affecting 29,000 passengers. Only 15 of Alaska’s 114 daily flights and one Horizon flight had departed Seattle by that time as the region was hit by an extraordinary ice storm.

“We are doing our best to operate as many flights as possible to get people where they need to go as we cope with severe ice accumulation on our planes,” Alaska Airlines’ President Brad Tilden said. “We appreciate customers’ patience and understanding as we contend with the freezing rain that has disrupted travel throughout the region. Our operational decisions will continue to be guided by our commitment to safety.”

Tilden advised customers to check the status of their flights online at www.alaskaair.com and not drive to the airport unless their flight is scheduled to operate.

Both airlines are working to re-accommodate passengers whose flights have been disrupted. Passengers booked on canceled flights to or from Seattle between Jan. 17 and Jan. 20 may request a refund of the unused portion of their ticket at www.alaskaair.com through Jan. 25. Customers who need to reschedule their travel should call Alaska Airlines Reservations at 1-800-ALASKAAIR (1-800-252-7522 or TTY/TDD line 1-800-392-0228). The airline is waiving change fees.

Alaska Airlines and Horizon Air will attempt to operate 20 departures from Seattle each for the rest of the day, if weather conditions permit. Weather reports forecast freezing rain until midnight with rain expected tomorrow. If that holds true, the carriers expect to return to mostly normal operations on Friday, however, the forecasts have been changing frequently.

Alaska Airlines and Horizon Air Operating Limited Schedules In Seattle is a post from: Aviation news - Planegrazy

ARC announced today that based on research into the purchase price of airline tickets in 2011, airline passengers acquired the least expensive airfares six weeks in advance of their flights. At that point during any given 120-day advance purchase period throughout 2011, flyers paid 5.8 percent below the year’s average fare of $358.30. ARC determined this by examining close to $80 billion worth of ticket sales, spread across almost 144 million transactions, for flights with a U.S. origin and destination.

“Many people have long thought that the further out from your flight that you buy an airline ticket, the less expensive it will be. Our data indicates that this isn’t necessarily true,” said Chuck Thackston, managing director of data and analytics at ARC. “Although low fares are available over the 120-day cycles in 2011 that we analyzed, the vast majority of tickets costing below the average fare were purchased about six weeks before the flight date.

“We’re not advising people to purchase tickets only at this time during the cycle as there is no guarantee they will receive the lowest price of the year; it is just what the data indicates and we have seen this pattern over the last four years.”

ARC Reports Lowest-Priced Air Tickets are Purchased Six Weeks Before Flight is a post from: Aviation news - Planegrazy

Commenting on the record year, UATP CEO Ralph Kaiser stated, “UATP bounced back from challenging times in 2009 and prospered in 2010. During 2011, through the resurgence of corporate travel and UATP’s product diversity, including its new DataStream product suite, we have grown in every aspect of our business. In fact, we are so optimistic about 2012 that we expect to break these 2011 records.”

UATP processed approximately US$13 billion in 2011 and signed five new airline Issuers: Aeromexico, Malaysia Airlines, Qatar Airways, Shandong Airlines and Turkish Airlines. Transaction volume from existing Issuer programs was up 17% and total charge volume grew by 23%.

UATP continues to diversify its products. “UATP’s payment processing business continued to grow rapidly and saw a 43% increase in 2011. We also attribute a significant portion of our growth to our new DataStream product line which has allowed new Issuers to join the Network with little up-front investment while allowing them to provide their corporate customers with a state-of-the-art, data rich, multi-lingual and multi-currency travel management system. We expect the 2011 significant growth rates throughout all lines of UATP’s business to continue in 2012,” said Kaiser.

DataStream, UATP’s proprietary billing system, along with DataMine, a corporate portal and DataView, an interactive dashboard has been the key to new Issuer growth. UATP’s core business, the corporate travel card, has been significantly enhanced with addition of these products and offers UATP’s airline owners and corporate clients alike with further options in their travel management programs.

“In 2012, UATP will continue its growth with the expansion of the Network with the launch of new Issuers and Merchants and continued growth of our products and processing services for online payment brands. We expect to sign more Issuers and will continue our quest of lowering distribution costs for airlines and other travel-related Merchants by solving travel payment needs. It’s going to be a good year; stay tuned for upcoming announcements,” concluded Kaiser.

UATP Announces New Records for 2011 is a post from: Aviation news - Planegrazy