After a calamitous 2009, air value sales began their recovery in 2010 driven by returning demand, especially among business travellers. Low cost carriers continued their strong performance since travellers were still price-sensitive. The stability in fuel prices also helped airlines and their profitability, while ancillary revenues continued to be a strong area for growth. To better control capacity, pursue new revenue opportunities and reduce costs, consolidation was a key trend in 2010. However, the outlook, while initially positive, could be undermined by the recent climb in fuel prices.
- The Great Recession in 2009 caused a significant decline in both global real GDP growth and exports. Subsequently,air value sales dropped by 14% to US$545 billion in 2009.
- As the global economy began to recover, business travellers returned to the road, and international business travel grew 5% in 2010, regaining all of the ground lost in 2009.
- Low cost carriers continued to steal share from charter and schedule airlines as price-sensitive travellers opted for less expensive tickets.
- Globally, the percentage of internet sales made online for air travel has grown from 26% in 2005 to 38% in 2010.
- Asia Pacific is expected to be the fastest-growing region over 2010-2015, but the threat of high fuel prices will continue to plague the airline industry.