Melburnian1
Enthusiast
- Joined
- Jun 7, 2013
- Posts
- 24,673
While we always have to be cautious when it's just one month of data, BITRE statistics for March 2017 show that (in total) into and out of Australia, there were 4.275 million seats available in March 2017, an increase of 6.2 per cent compared to March 2016 - but passenger numbers only rose 1.7 per cent to 3.06 million between these two March months.
Divide these figures by half and you get roughly 1.5 million passengers leaving Australia in March 2017, versus 2.13 million seats available.
Little wonder that yields are under pressure, although it will vary by route depending on how much competition there is (and differing levels of demand.)
If this continues, we may eventually see some reductions in routes or frequencies by some airlines, as always on a case-by-case basis.
I can't, for instance, see VA making any money to speak of between MEL and HKG. QF will continue to lose money on its LHR routes.
And all this is with relatively low oil prices.
Divide these figures by half and you get roughly 1.5 million passengers leaving Australia in March 2017, versus 2.13 million seats available.
Little wonder that yields are under pressure, although it will vary by route depending on how much competition there is (and differing levels of demand.)
If this continues, we may eventually see some reductions in routes or frequencies by some airlines, as always on a case-by-case basis.
I can't, for instance, see VA making any money to speak of between MEL and HKG. QF will continue to lose money on its LHR routes.
And all this is with relatively low oil prices.
