Global airlines saved US$7b in fuel bill in 2014, says OAG
Published on: Tuesday, December 23, 2014
BANGKOK: Jet fuel price dropped by 20 per cent compared to a year earlier, resulting in a saving of US$7 billion on the fuel bill for the global airline industry in 2014, according to OAG, the market leader in aviation intelligence."While it is being reported that lower fuel prices are good news for airlines and their passengers, there is the possibility that these low prices reflect weaker demand in the global economy."In which case, we could be at the top of the commercial aviation business cycle," said Mark Clarkson, Business Development Director Asia Pacific for OAG.
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OAG announced the key findings of its, "What is shaping air travel in 2015?" trends report Monday. The report said Chinese outbound travel will remain a hot topic in 2015 as demand for air transport continues to rise. "Since November 2013, 19 new Chinese airlines have commenced service or are in the planning stages.Even at six per cent passenger growth annually, the Chinese travel market will double every 12 years," it added. Many of the largest markets for travel to and from China are within North East Asia, and the number one market is South Korea.
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The number of passengers flying between China and South Korea grew by 39 per cent in the year to September 2014, it said. The combination of Malaysia Airlines' two hull losses and civil unrest in Thailand, prompted the much courted Chinese tourists to stay away from the Malaysia-Thailand-Singapore area, with visitor numbers down by 30 per cent, OAG said.
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According to the OAG Traffic Analyser, zero growth in these markets comes at a time when total international passengers from China grew by 19 per cent in September 2014.Stay up-to-date by following Daily Express’s Telegram channel.
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