Revenues and passengers increasing despite high oil prices, APD and security concerns
However, over the same period, combined pre-tax profits among these airlines fell by 34.8%. In terms of passengers, the overall number of people uplifted by UK-based airlines on scheduled and non-scheduled flights increased by 1.4% in 2013 alone, and by 9% between 2009 and 2013.
Although the airline industry suffered considerably as a result of the 2008/2009 global economic recession — with a combination of falling passenger numbers, reduced consumer expenditure, falling cargo volumes, high global oil prices and increasing taxation in the form of Air Passenger Duty (APD) — the industry has of late exhibited much more encouraging signs of growth, aided in part by economic recovery consolidating round the globe. As such, travel and tourism in general, including airlines and airports, are now in a considerably improved position in comparison to where they stood just a few short years ago.
One of the more pressing issues currently facing the airlines market is finding a long-term viable solution to the issue of seriously capacity-constrained airports within the south east of England. Should the Government choose to act constructively upon the Davies Commission’s recommendations in 2015 — which are widely anticipated to call for airport expansion — this will offer a considerable boost to airlines operating in and out of the UK.
Other issues covered by this Key Note report include airline competition, airline consolidation, the effects of APD and global oil prices, as well as current security concerns. In addition, the report looks at current and future trends within the industry, including consumer travel habits, the global relaxation of visa rules and the potential for future alterations to some airlines’ frequent-flyer programmes.
Key Note forecasts that in the future, UK terminal passenger numbers will increase by 9.8% by 2018, and that aircraft movements and total cargo handled will also grow at a moderate pace, resulting in steadily increasing revenues for airlines.
