International air travel to and from Oz is not rising as fast as it was

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Melburnian1

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The BITRE has issued its February 2019 international air passenger (and freight) statistics in the last few days:


Singapore - Melbourne is now the leading international route for both passengers and freight (although the tonnage of the latter declined in February 2019 compared with February 2018, in line with the occasional media report suggesting that globally, air freight is declining).

For the year to February 2018, air travel in and out of Oz rose by 5.4 per cent.

Fast forward to the year ending Feb 2019 and the increase is not as high - up 4.8 per cent.

Much of the decline can be attributed to how travel into and out of mainland communist China (ex and to Oz, not worldwide) rose by 26.8 per cent in the year to Feb 2018, but "only" 11.3 per cent in the 12 months to February 2019.

No one should sneeze at 11.3 per cent growth but it's the decline that should concern tourism businesses. 4.8 per cent growth is also good - if we do the compounding, that's a doubling in c.15 years - but any trend is more important.

I'd like however to see a few more months' figures to establish if this downwards trend will continue. My hunch is that to some extent it will, but what others think would be instructive.

The share that NZ represents of all international journeys in the year to Feb 2019 compared with same to Feb '18 dropped to 17.2 per cent from 17.7.

When travelling internationally, Australians traditionally used to often book many months in advance, especially for trips beyond southeast Asia.

My inkling is that more of us are booking closer to departure dates, with the possible exception of European trips where we perceive land-based arrangements (hire cars, Eurail journeys, internal air travel and especially accommodation still need to be booked a substantial number of months in advance).

I don't share Mr Alan Joyce's sunny optimism in his comments yesterday about 'leisure travel' and 'international travel' bookings during the next six months. He has data on his side not available to the rest of us but it just doesn't jell with people I ask, who more often than not obliquely suggest they're somewhat reluctant to part to a major extent with their hard earned. This may be a function of the Federal election though.
 
Australian dollar also at 5-yr lows (albeit in a fairly tight range) which makes outbound travel more expensive.

(Though cheaper inbound)
 
Australian dollar also at 5-yr lows (albeit in a fairly tight range) which makes outbound travel more expensive.

(Though cheaper inbound)

moa999, again historically there were more of us leaving than tourists (and other visitors) arriving: 60: 40 was what it used to be.

Now it must be getting close to 50:50.
 
Some other interesting tidbits:

1. Qantas market share:
Compared to February 2018, Qantas Airways’ share increased by 1.0 percentage point, Jetstar’s share decreased by 0.7 percentage points,Singapore Airlines’ share increased by 0.4 percentage points, Air New Zealand’s share increased by 0.6 percentage points and Emirates’ share decreased by 1.0 percentage point.

2. Avalon

Inbound 19802 pax in Feb, Outbound 11823, with double daily 377 seat aircraft, thats load of 93.8% inbound but only 56% outbound. Inbound would have to reflect influx of foreign students.

3. Winners and losers (seat utilisation)

Inbound, JL's services from Japan had 97.2% of seats filled, closely followed by QF's services from Chile (97.1%) from Japan (97.0%), whilst poor loadings plagued Batik's DPS-PER service (32.2%) and VA's services from PNG (32.6%) and Solomon Islands (33.0%).

Outbound, QF did well with Chile (96.9%), New Caledonia (92.3%) and Thailand (91.8%), with Air Caladonie just behind (91.7%). At the other end, Batik could only manage to fill only 17.2% of its seats from Perth to Bali, with Nauru Airlines Nauru service (25.7%) and VA's Solomon Islands (33.0%) next worst.
 
Also interesting that in February 2019, LCCs only accounted for 14.2 per cent of all international passenger trips to and from Oz by air, whereas in February 2018, share was 15.5 per cent.

JQ dropped by 5.8 per cent, and D7 (AirAsiaX) declined by 13.2 per cent (among the changes were a reduction in JQ flight to/from SIN) while with the introduction of thrice weekly flights to MEL, 5J skyrocketed by 76.9 per cent.

But legacy airline OZ beat that with a 79 per cent rise, albeit also off a small base.

EK's passenger numbers Oz to/from NZ dropped 67.7 per cent as flights were (sadly for many) rationalised.
 
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How does VA sustain Honiara service with such terrible figures - is there a government subsidy on the table?
 
One month is not a sufficiently long indicator of trends but I omitted to mention that in February 2019, outwards international passenger journeys (i.e. departing Australia, whether locals or foreigners) only rose 0.6 per cent. Of the four busiest Australian international airports, BNE was best with a 2.5 per cent rise, MEL was an anaemic one per cent, SYD dropped 0.8 per cent compared to the month of February 2018 and PER rose 0.2 per cent.

Inwards travel was up 3.5 per cent overall in February 2019 compared to February 2018 but again, this is worse than previous growth.
 
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