Press Releases 2007
Growth in low cost sector continues to soar
19 September 2007
- Budget airline capacity more than doubles in four years
- Low cost growth up 20%, world air transport up 4%
- Europe leads the world in low cost/network balance
- One in three available seats are now low cost, in Europe
(World Low Cost Airlines Congress, London) Capacity on low cost airlines has more than doubled in just four years, according to latest figures released from OAG BACK Aviation Solutions, a division of flight information and data solutions company Official Airline Guide (OAG). This month, budget airlines plan to offer more than 58 million seats on over 392,000 flights worldwide, compared with 47 million seats on over 326,000 flights in September 2006. This represents more than 11 million extra seats on over 66,000 more flights operated by the low cost sector – a year-on-year increase of 24% and 20% respectively.
Low cost flights now account for 16% of all flights and 20% of all seats worldwide, compared to 14% and 17% a year ago.
The figures are revealed in a special report conducted by OAG BACK Aviation Solutions to coincide with the World Low Cost Airlines Congress in London and the World Route Development Forum in Stockholm this week. OAG collates data from more than 1000 airlines, on a daily basis, and tracks around 28 million departures a year.
Europe
Within Europe, low cost flights account for 22% of the total flight activity within this region for September 2007, up from 18% year on year. Low cost capacity represents 30% of the total seats available within the market, a jump of 6% compared with September 2006. Low cost carriers will offer 133,000 flights and 21.8 million seats within Europe in September 2007.
Intra-regional growth figures show that the European low cost industry is outperforming the rest of the world by a significant margin. There are just under 31,000 additional no frills flights offering 5.6 million seats within the region this month than in September 2006, a rise of 30% and 35% respectively.
North America
Within North America, low cost flights account for 18% of the total flight activity within this market (164,000 flights), up from 17% last year. Low cost capacity represents a similarly modest rise of 1% to 27% of the total number of seats available in this region (22 million seats).
The US domestic market, although still the busiest in this sector, has shown a 7% growth in both frequency and capacity (10,700 more low cost flights and 1.3 million more seats).
Asia/Pacific
More dramatic is the growth shown by the low cost sector in Asia/Pacific, which has risen from 3,900 flights and 600,000 seats six years ago, to an impressive 61,000 flights and 9.2 million seats in September this year. As a result, the low cost market now accounts for 12% of all flights and all seats within Asia/Pacific.
Asia continues its upward trend, with 12,500 more flights (up 26%) year on year, with 2.2 million more seats (up 32%). India is making a significant contribution to this growth. The latest figures for September 2007 reveal there is a 44% growth in the number of domestic low cost flights (5,700 more flights) and 75% growth in capacity of over 1.1 million seats.
Middle East
Although comparatively small in actual numbers, the Middle East low cost sector is still booming, with a doubling of no-frills flights within the region to 2,200 offering more than 350,000 seats.
Low cost penetration graphs
Flights on Low Cost Carriers vs. Total on All Carriers
Seat Capacity on Low Cost Carriers vs. Total on All Carriers
Busiest Low Cost Routes
Analysis of the busiest routes worldwide operated by low cost airlines this month, reveals no change in the top three routes with the highest number of no-frills flight operations per week compared to the rankings in September 2006. They are Dallas Love Field/Houston (372 low cost flights per week), Melbourne/Sydney (366 flights) and Denver/Las Vegas (319 flights).
There are just two ‘new entry’ routes in the Top 10 compared with a year ago. They are Mumbai/Delhi (in at number 4 with 318 low cost flights per week), reflecting the dynamics of the rapidly expanding Indian market, and Cape Town/Johannesburg (in at number 10 with 266 low cost flights per week). Interestingly, there are no European routes within the top ten with the highest weekly frequencies.
About OAG BACK Aviation Solutions
OAG BACK Aviation Solutions is a division of OAG (Official Airline Guide), a global flight information and data solutions company for the passenger aviation, air cargo logistics and business travel markets. OAG BACK Aviation Solutions is the world leader in industry intelligence, combining OAG’s global data services and analytical solutions with BACK’s worldwide aircraft fleet, financial and traffic data and its renowned strategic consulting practice. It provides information, analysis tools and services for all four quadrants of commercial aviation: manufacturing capacity; supply; demand and performance.
The business is underpinned by its data management expertise. It is best known for its airline schedules database which holds future and historical flight details for 1,000 airlines and more than 3,500 airports. This aggregated data feeds the world’s global distribution systems and travel portals and drives the internal systems of many airlines, air traffic control systems, aircraft manufacturers, airport planners and government agencies. For more information visit www.oagdata.com and www.backaviation.com.