The Latest Aviation Data released by the International Air Traffic Association has pointed out the fact that growing oil prices may well lead to the slackening of air booking demands that have till now shown robust trends. Another impact on Airlines Booking will be reduced profit margins by the airlines industry as they compete among themselves for retaining their customer base. Thus the viability of airlines carriers already operating in thin margins are questionable.
As an overall prediction IATA has said that 2011 would see a second consecutive year of profitability but with industry profits falling by 40% to $9.1 billion. Also the present prediction depends on oil prices stabilizing at the current oil prices of $84 a barrel. The agency has predicted that for every dollar increase in the average price of a barrel of oil over the year, the airlines must recover $1.6 billion in costs to maintain the operating profit.
As per the IATA yearly trends the total traffic was up 8.2% in the current year, while cargo grew 20.6% as companies around the world re-stocked their inventories. Similarly, Passenger and cargo numbers for December 2010 showed they had outstripped 2008's pre-recession heights, with air travel volume up by 4% and cargo by 1% over 2008. Thus the broad recessionary trends are a thing of the past though the profit margin remains at 2.7%. Hence the sustainability of this is also a question.
As per the regional Flights trends, Middle East airlines led the way in passenger demand, recording 17.8% growth in 2010 despite a 13.2% rise in capacity as a steady stream of new aircraft was delivered to Gulf-based airlines. Other regions also recorded year-on-year growth in 2010: Africa with 12.9%, Asia-Pacific 9%, Latin America 8.2% and North America 7.4%.Europe finished last with a dismal 5.1% rise in air traffic.
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