Asia, Next-Generation Aircraft Drive Continued Airline Capacity Growth

Press release from the issuing company

Wednesday, November 9th, 2011

The world's airlines have scheduled 4% more capacity on 2.5% more flights inNovember 2011, marking six consecutive months of growth compared to the same period last year, according to the latest statistics fromOAG, aUBM Aviationbrand. The OAG FACTS (Frequency and Capacity Trend Statistics) report for November reveals that59,639more scheduled flights offering11 millionmore seats will operate this month, totaling312.7 millionseats on2.4 millionflights. Capacity growth continues to be driven by 'next-generation' aircraft, such as Boeing's 747-8 Intercontinental and Airbus' A380 jetliner, which carry more passengers than the older models that are being replaced. Average seats per flight in November total 126, compared to 125 a year ago.

Regionally,Asia Pacificremains the largest aviation market overall, with 35.6% share of worldwide seat capacity. The intra-Asia Pacificregion also retains its leading position in total seat volumes, growing 8% to nearly 96 million seats inNovember 2011compared toNovember 2010, comprising 30.6% of the worldwide seat share.Intra-North Americais the second-highest seat volume region, at 23%, but recorded a decline of 2.1% versus the year-ago period. 'To/From Africa,' 'Within North America,' and 'Within Europe' all registered a decline in frequency of 6.0%, 2.7%, and 0.6% respectively compared to the same period last year.

"Economic instability and political unrest have begun to hamper both business and leisure travel demand in the U.S.,EuropeandAfrica, and we expect to see ongoing declines in seat and frequency growth rates in these regions compared to the worldwide average," saidPeter von Moltke, Chief Executive Officer, UBM Aviation. "That said, we are witnessing history inAsia, where an incremental 2.9 million seats were added by just 6 airports year-over-year in November. The possible impact of an economic crisis aside, the increasing travel demand to, from and withinAsia Pacificand other developing countries will sustain the industry's overall growth for a long time to come."

InNovember 2011, Low Cost Carriers have a worldwide schedule capacity share of 24% -- a marginal 1% improvement over the previous year, driven by slowing growth inEuropeandNorth America. However, LCCs' worldwide share of capacity and frequency has more than doubled in less than a decade, growing from 10% capacity share inNovember 2002to 24% inNovember 2011, and 8% frequency share inNov. 2002to 20% this month. TheMiddle East, Central &South America, andAsia Pacificcontinue to lead LCC seat capacity growth, posting 20%, 18.5% and 17.1% increases respectively overNovember 2010.

Major Hub Airports

The world's busiest airport (by passenger traffic),Atlanta, saw a 3% decline in schedule frequency and 1% decline in seat capacity. Beijing, second in passenger traffic volume, is catching up with 1% and 3% growth in schedule frequency and seat capacity respectively. London Heathrow remains the third-busiest passenger airport in the world, recording a marginal decrease in schedule frequency but a marginal increase in seat capacity.

Based on annual growth rate of seat capacity among the world's key hub airports inNovember 2011, Tirana (TIA) once again recorded the highest growth rate of 65%, followed byMexico City(38%) andTallinn(37%). Tripoli suffered the biggest decline in seat capacity, 93%, compared to the same period last year, as well as the highest decline in schedule frequency.

In terms of schedule frequency, Tirana Airport achieved the highest growth rate of 57% overNovember 2010, followed byMontevideo(50%) andIslamabad(45%).