International market: The number of Chinese passengers to the UK is recovering slowly; American Airlines launches unlimited fly year card!
What are the latest developments in the international aviation market this week (11.11-11.17)? The Civil Aviation Resource Network takes you through the relevant news of the past week, allowing you to have a clear overview of important information.
Market dynamics
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1. UK: Chinese tourists “slowly recover”
Patricia Yates, CEO of VisitBritain, said at the British Parliament’s Culture, Media and Sports Committee on November 14 that Chinese tourists to the UK will not fully recover next year, and it will not be until 2025 that Chinese tourists will return to the pre-epidemic levels. s level. "Our expectation is 2025," Yates said. "We know it will be a slow recovery process." Before the epidemic, Chinese citizens' spending in the UK was second only to American tourists.
This year, flight bookings from China have dropped by 50%. Yates attributed this to the fact that the UK did not receive approval from the Chinese government for outbound group tours until August. Chinese travelers in the United States are also slowly recovering. Chris Thompson, CEO of Brand USA, a U.S. tourism promotion agency, said that before the epidemic, Chinese tourists spent more in the United States than in other markets.
2. ARC: U.S. air ticket sales continued to decline in October
According to the latest report from Aviation Reporting Corporation (ARC), following a seasonal decline in September, total U.S. airline ticket sales fell 2% year-on-year and 5% month-on-month to $7.2 billion in October 2023. Total passenger traffic increased 4% year-on-year to 21.7 million passengers, but was down approximately 2% from September 2023.
U.S. domestic passenger traffic increased 5% year-on-year to 14.2 million passengers, but fell 1% month-on-month. International passenger traffic increased by 2% year-on-year to 7.5 million passengers, but fell by 3% month-on-month. According to ARC data, the average price of a round-trip domestic air ticket in the United States fell 4% year-on-year to $557 in October, but was up 4% compared with September 2023.
3. American Airlines predicts passenger traffic will hit new record during Thanksgiving holiday
Major U.S. airlines and the Transportation Security Administration (TSA) said on November 13 that they expected record air travel during the Thanksgiving holiday.
The Association of American Airlines (A4A), an industry organization representing American Airlines, United Airlines, Delta Air Lines and other airlines, predicts that 29.9 million passengers will travel between November 17 and 27, setting a record. This is an increase of 9% from the 27.5 million passengers in the same period last year and 1.7 million more than the pre-epidemic record level. The TSA said it expects to screen 30 million U.S. airline passengers during the 12-day period ending Nov. 28, and expects to set its busiest single-day screening record ever during the holiday period.
In April, international travel to the United States reached 86% of pre-epidemic levels in August
According to the latest data from the U.S. National Tourism Administration, approximately 7 million international travelers came to the United States in August, equivalent to 86% of pre-epidemic levels. About 3.3 million of those international travelers came from outside North America. In August, India was the United States' second-largest passenger market outside North America, with 221,000 passengers coming from India, second only to the United Kingdom with 396,000 passengers.
This year, India has been the U.S.'s second-largest passenger market outside of North America. Nearly 1.2 million Indian travelers visited the United States from January to August. The UK topped the list with 2.5 million passengers. In August, nearly 8.9 million Americans traveled abroad, equivalent to 94% of pre-pandemic levels in 2019. To date, more than 66 million Americans have traveled abroad.
5. European air ticket prices have increased by 16% compared with before the epidemic
European travelers are benefiting from ticket price increases that are less than overall inflation, according to data released by the International Air Transport Association (IATA).
IATA said that while flight prices in Europe increased by 16% in June 2023 compared with the same period in 2019, the figure was still below the EU's average inflation rate of 20% during this period. The growth in air ticket prices peaked in early 2023, up more than 20% from the same period in 2019, but fell back slightly by June.
policy management
6. Dangerous proximity accidents occur frequently, FAA requires action
On November 15, an independent safety review panel formed by the Federal Aviation Administration (FAA) after a series of dangerous close aviation accidents called for "urgent action" and made a series of recommendations to enhance safety. The 52-page report released by the group pointed to air traffic controller shortages, technical issues, funding needs and other challenges.
Since January, the National Transportation Safety Board has launched investigations into seven dangerous approaches, including some that could have been catastrophic. The report calls for strengthening the FAA's organizational structure to "institutionalize roles and responsibilities and promote a proactive, data-driven safety culture."
7. The Netherlands gives in to Schiphol Airport flight reduction plan
The Dutch government made a concession decision on November 14 that KLM and other airlines can carry out a complete flight schedule at Amsterdam Schiphol Airport next summer. The Dutch government had previously planned to cut the number of flights at Schiphol Airport to reduce noise pollution.
The decision comes after mounting pressure from European and foreign governments to get the Dutch government to halt cuts. The European Commission and the U.S. Department of Transportation have both threatened to take action against the Netherlands and its airlines, especially KLM, on the grounds that the Dutch flight reductions involve violations of relevant regulations and treaties.
aviation airport
8. Air Canada will “increase” flight capacity in the Asia-Pacific region
Air Canada announced on November 14 that it will "strategically increase" flight capacity on its Asia-Pacific network in the winter and summer of 2024, starting in mid-December. This winter, Air Canada will offer 57 weekly flights between Canada and Asia, rising to 64 weekly flights in the summer.
Compared with last winter, Air Canada's capacity to Japan will increase by 96% this winter, and seasonal flights between Vancouver and Osaka will resume early on May 1, with three flights per week, until June 17 to increase to weekly Class four. Air Canada will also offer up to two daily flights to Hong Kong and will launch a new Vancouver-Singapore route on April 3 with four flights per week.
9. American Airlines applies for New York JFK-Tokyo Haneda route
American Airlines said it has formally applied to the U.S. Department of Transportation (DOT) to open flights between New York's John F. Kennedy International Airport (JFK) and Tokyo's Haneda Airport (HND), and will become the third airline to open flights to Mexico's newest airport in 2024. American Airlines.
American Airlines will compete with United Airlines for Haneda Airport slots that Delta Air Lines has given up. United Airlines has applied to the U.S. Department of Transportation to use Boeing 777-200 aircraft to fly daily from George Bush Intercontinental Airport in Houston to Haneda Airport. American Airlines applied to use 777-200 to operate the JFK-Tokyo Haneda route, with one flight per day.
10. Frankfurt Airport hits milestone in number of flights in October
Frankfurt Airport recorded its highest monthly flight number in four years in October, with passenger traffic up 15% compared to the same period last year. Fraport, Germany's largest hub airport, said Frankfurt Airport handled 5.7 million passengers last month, still 12% below October 2019 traffic.
Frankfurt Airport had 40,720 inbound and outbound flights in October, which is the highest number of flights in a single month since October 2019, although it is still 11.4% lower than October 2019.
product service
11. Frontier Airlines launches unlimited flyer card product for US$499
American Frontier Airlines offers a full unlimited flight annual pass at the lowest price ever at $499. The airline said the GoWild! annual pass promotion is part of a pre-Black Friday campaign that will run from now until November 28.
The annual card is valid from May 1, 2024 to April 30, 2025. Frontier Airlines said annual pass holders can enjoy unlimited free flights during this period and can travel to all U.S. and international destinations offered by Frontier Airlines. However, passengers will still need to pay the tax when booking their tickets.
Aircraft manufacturing and fleet
12. Many airlines signed major aircraft orders at the Dubai Air Show
During this week's Dubai Airshow 2023, several airlines committed to renewing or expanding their fleets through the purchase of aircraft.
Emirates has signed orders with both Boeing and Airbus. On November 13, Emirates Airline reached an order worth US$52 billion with Boeing to purchase 55 additional Boeing 777-9s, 35 777-8s and 5 787 Dreamliners, bringing the total order count to 295 aircraft. Additional models purchased include. The first 777-9 is expected to join Emirates' fleet in 2025, with additional aircraft to be delivered by 2035. The first 777-8s are expected to be delivered in 2030.
On November 16, Emirates announced the purchase of 15 additional Airbus A350-900s worth US$6 billion. The first aircraft is scheduled to join the fleet in August 2024.
Flydubai, a subsidiary of Emirates Airlines, announced on the 13th that it will purchase 30 Boeing 787-9 Dreamliners to "diversify its fleet by introducing wide-body aircraft." The order is worth $11 billion. Flydubai's current fleet consists of Boeing 737 aircraft.
Ethiopian Airlines agreed on the 14th to order 11 Boeing 787-9 Dreamliners and 20 Boeing 737-8 Max aircraft, with the option to purchase an additional 15 and 21 additional aircraft of these two types. This is the largest Boeing aircraft purchase order in African history.
Turkish Airlines confirmed on the 13th that it is in "ongoing" negotiations with Airbus to purchase 355 aircraft, of which 240 are firm orders and 115 are optional orders, with delivery times from 2026 to 2036.
13. Boeing will lock in annual aircraft delivery target after October slowdown
Boeing must deliver 70 737 narrow-body jets and 14 787 Dreamliners in November and December to meet its 2023 goals, leaving the U.S. planemaker facing a sprint into the holiday season.
Boeing announced on November 14 that it delivered 34 aircraft in October. It said it would deliver at least 375 narrow-body jets this year, down from its original target of 400 to 450 737s, along with at least 70 Dreamliners. Deliveries are typically highest in the year-end months as aircraft manufacturers race against time to meet annual targets. Boeing delivered 87 737s and 16 Dreamliners to customers in the last two months of 2022, and if it can match last year's delivery pace in the last two months of the year, it will meet its goals.
14. Air Baltic orders 30 more Airbus A220-300 aircraft
Latvian AirBaltic said on November 13 that it had placed an order for 30 additional Airbus A220-300 aircraft and had options for another 20, with the goal of having 100 aircraft by 2030. The move comes as the airline prepares for an initial public offering in about a year.
Air Baltic CEO Martin Gauss said the new order will allow Air Baltic to expand its existing bases in the Baltic region, open new bases in Northern Europe and expand its wet-lease operations serving other airlines.
distribution technology
15. Amadeus expects more “split” business class fares in 2024
Airlines will offer more "split" business class fares as demand for premium airline classes grows, according to a new report from travel technology company Amadeus. The company's 2024 Travel Trends report notes that several trends are likely to emerge in the travel industry next year, including the emergence of more and more flexible business class fares that exclude airport lounge access, seat selection and upgrades. rights and interests.
Amadeus said several airlines have already launched these "more affordable and accessible" business class fares, including Emirates, Qatar Airways, Finnair, as well as Air France and KLM, which launched earlier this year Lite business class fares have been introduced on long-haul flights.
16. Saber now provides NDC content of Polish airline LOT
Technology company Saber announced on November 15 that travel agents connected to Saber can now access LOT Polish Airlines’ New Distribution Capability (NDC) content through Sabre’s global distribution system. These NDC content can be booked through Sabre’s Offer and Order API, Saber Red 360 travel agent booking solution, and the company’s GetThere online booking tool.
other
17. American Airlines and JetBlue call for more support for SAF
American Airlines and JetBlue are calling on governments and the energy industry to provide more support to develop and scale production of sustainable aviation fuel (SAF) to meet carbon reduction goals. Jill Blickstein, American Airlines' chief sustainability officer, said on Nov. 15 that SAF is "more theoretical than practical right now."
Blickstein noted that American Airlines and other airlines have signed many SAF supply agreements but have not yet begun large-scale production of the low-emission fuel. This limited production scale is a problem given the aviation industry's plans to significantly increase the use of SAF in order to achieve net-zero carbon emissions by 2050. IATA estimates that 65% of global airline emissions reductions will come from the adoption of SAF.
18. North American airlines look to Asian markets to boost profits
The return of flights to the Asia-Pacific region will accelerate in 2024 as North American airlines bet on becoming the next high-margin revenue source amid soaring costs. The recovery of Asian markets is particularly important for airlines with a large share of long-haul revenue.
Airlines met pent-up demand for flights to Europe with high fares this summer, but those prices may not be repeated next year as capacity increases, some analysts said. Business travel, a "cash cow" for airlines, has also rebounded in Asia. According to the Global Business Travel Association, travel spending in the Asia-Pacific region will grow 41% this year to US$567 billion, rising to US$800 billion by 2027.