The Hindu Business Line : `Global airlines perform better in 2004'

IN 2004, scheduled airlines across the world posted a combined operating profit of 0.9 per cent of operating revenues against an operating loss of 0.5 per cent of operating revenues in 2003, according to data obtained from 188 member-states of International Civil Aviation Organisation (ICAO).

According to information obtained from the ICAO Journal, the aggregate operating revenues in 2004 have been estimated at $3,74,300 million, an increase of 16.3 per cent over 2003. The total operating expenses in 2004 have been approximately pegged at $3,70,800 million, a 14.7 per cent rise over 2003.

In 2004, the operating revenue per tonne kilometre performed rose to 76.1 cents, from 73.7 cents in 2003. Last year, the operating expenses per tonne kilometre performed went up to 75.4 cents, from 74.1 cents in 2003. Each tonne kilometre is a combined measure of passengers, freight and mail traffic which takes into account the total distance flown.

The positive operating results of 2004 after three consecutive years of operating losses have been mainly attributed to a 13 per cent growth in scheduled and non-scheduled air traffic and a 10 per cent increase in the overall capacity that was on offer.

Despite this, however, the net financial results, after taking into account non-operating items such as interest charges, subsidies, capital gains or losses and deduction of income tax has been provisionally estimated to be a loss of 1.1 per cent of the operating revenues, an improvement over a loss of 2.3 per cent experienced in 2003. The net loss of the industry has been mainly attributed to the negative results in non-operating items suffered by carriers in North America.

In 2004, the average passenger load factor on total scheduled services went up to 73 per cent, from 71 per cent in 2003. On international flights, the passenger load factor went up from 72 per cent in 2003 to 74 per cent in 2004.

On a regional basis, airlines in West Asia recorded the strongest traffic growth, followed by those of the Asia Pacific and Africa. Airlines of North America, Europe, Latin America and the Caribbean also showed relatively strong increases but were nevertheless below the world average.

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