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UK airlines report increased passenger numbers and revenue

UK airlines report increased passenger numbers and revenue UK airline operators posted a healthy increase in cumulative passenger numbers and revenue, despite difficult economic conditions at present.

British airlines posted revenue of £17.32 billion for 2007 which was up by 4.1 per cent on 2006 figures.

Equally during 2007 the number of passengers taking a flight on a UK airline rose by three per cent to reach 131.2 million people.

Through carrying these travellers to various destinations all around the world, the distance covered by British airlines rose by 4.7 per cent to 315.87 billion seat kilometres.

These figures cover both scheduled and non-scheduled flights by UK carriers, the latter including charter flights which are favoured by more independent travellers.

However, greater fuel costs are proving a problem for airlines as the price of jet fuel has rocketed by 80 per cent from 2007 to 2008.

The price of oil typically accounts for just over 30 per cent of the operating costs of airlines, so high prices have a significant impact.

For example, low-cost operator Ryanair stated earlier in the year that faced with current oil prices it is only likely to break even by the end of this financial year.

There is still plenty of scope for growth though as the airline industry has benefitted significantly from the US-EU Open Skies agreement which came into force during March 2008. The agreement removed restrictions on routes, prices, and frequency of transatlantic flights and has boosted European airlines wishing to operate to the US.

Experts predict long-term growth in passenger demand for air travel with low-cost scheduled services expected to provide the biggest area of expansion for the period up to 2010.


Airline News posted on 24 July 2008

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