More planes in the air

Fleet expansion sign of industry confidence

More aircraft are being taken out
of storage and returning to active service, according to a new report.

The International Air Transport
Association said that 106 aircraft were delivered during June, in contrast to
33 retirements. This is an indication both of peak season demand as well as
airline confidence in market recovery.

It could also be a marker for
softer load and yield factors in the months ahead. The Farnborough Airshow this
July led to more than 400 orders for, or commitments to, large aircraft.

Growth rate

The association warned, however,
that matching supply to demand may be more difficult as a result and whilst fares
rose by 8.5 per cent in the premium market and economy lifted by 4.5 compared
to earlier in 2010, this growth rate had slowed and were still 15 per cent
below pre-recession levels of mid-2008.

“This is slower growth than seen in
April but could be due to data volatility. Data on US airlines reported by the
ATA shows acceleration in fare growth in both premium and economy markets over
June-July so this dip may be reversed with next month’s data,” read the report.

BIZmoreplanesSTORY

More planes, more confidence.
Photo: File
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