Friday, January 20, 2012

European airlines carry 7% more passengers in 2011

The AEA has announced their preliminary figures for 2011 traffic and they are indicating a good year, at least compared to 2010. Of course, 2010 was a year fraught with events that challenged European aviation, but now the positive message of the day is passenger growth! See the announcement here.

There is only one problem here: at what price? Too many people are blindly focused on passenger figures. "How many seats are filled?" "How many people did you carry?" "What was your load factor?" In essence, who cares! Passenger figures are only side to the calculation. It's price that we should really care about. It's the easiest thing in the world to fill airplane seats; it's another thing to fill airplane seats AND make a profit! This goes for any business. Who cares how many iPods Apple sells! I want to know how many iPods were sold at what price. The announcement says nothing about the yield that the airlines were getting. If European airlines were filling their seats at a loss then that's bad business.


faseeh ilyas said...

That's fine job you are doing.its a great improvement.:(cheers

faseeh ilyas said...

That's fine job you are doing.its a great improvement.:(cheers

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