ALEXANDER CAMPBELL / LONDON
The world's airlines lost $11.9 billion last year because of falling passenger numbers and fares, according to initial figures released by the International Civil Aviation Organisation.
ICAO says the net loss - 3.9% of revenue against a net profit of around 1.1% of revenues in 2000 - was caused by "general reductions in traffic, with little change in the capacity on offer, and in revenue yield [average fare paid]".
Overall, ICAO estimates that the scheduled carriers of its member states carried 1.62 billion passengers in 2001, down from 1.66 billion a year earlier. Average load factor was 69% (71% in 2000). Until 11 September passenger traffic was slightly up on 2000. Freight traffic for the year was down 6%, according to ICAO.
Unsurprisingly, ICAO says North American airlines performed worst last year, reporting "substantial operating losses". Both domestic and transatlantic services were badly affected. US major carriers have reported 2001 full-year operating losses of well over $4 billion.
A drop in fuel costs failed to translate into a significant fall in unit costs, which rose to 77.3¢ per tonne kilometre from 74.5¢ in 2000, says ICAO. Fuel costs represent around a quarter of operating expenses. The rise in unit costs may reflect a mismatch between reduced capacity and load factors, and stable workforce numbers and personnel costs for much of the year.
The Asia-Pacific region, as expected, missed the worst of the post-11 September crisis. ICAO says airlines there achieved a "small positive aggregate operating result" despite the ailing Japanese economy.
Overall, revenues fell more than twice as fast as traffic - 7.1% to 2.9% - with traffic only maintained by cutting fares.
Source: Flight International
