UK Air Passengers Finally Return to Pre-Recession Peak

Dino D'Amore
By Dino D'Amore January 26, 2016 20:48

UK Air Passengers Finally Return to Pre-Recession Peak

According to Airlines 2016, a new Market Update produced by market research and business intelligence provider Key Note, the financial performance of major airlines based in the UK improved noticeably between 2010 and 2014, with the combined revenue of such airlines growing by 33.7%.

The principle reason for the rising financial fortunes of UK airlines is the simultaneous rise in the number of passengers handled, with the overall number of passengers passing through UK airports finally surpassing its pre-recession peak in 2015. In addition, the recent fall in the price of oil has assisted in improving the profitability or airlines by mitigating what was previously one of the sector’s largest operating expenses. The industry has further benefited from recent reductions to the Air Passenger Duty (APD) tax, which have seen the charges lowered for long-haul travel and abolished for children.

These developments have come alongside what is a generally improving economic climate in the UK, with rising disposable incomes, low inflation and falling unemployment witnessed, which in turn has allowed for a greater number of consumers spending higher sums of money on holidays and travel in general, giving a welcome boost to airlines and the overall market concerned with air transportation.

In addition to the aforementioned point, Key Note’s Airlines 2016 Market Update evaluates the overall market for airports in the UK. This includes an exploration of the industry background, the current market size and performance, and the forecast future performance of the market. The report also includes a political, economic, social, technological, environmental and legislative (PESTEL) analysis of the sector, alongside a strengths, weaknesses, opportunities and threats (SWOT) evaluation.

Key Note forecasts that, looking forward, terminal passengers will grow by a further 15.3% between 2015 and 2019, bringing a considerable boost to the revenue of UK-based airlines. Key Note further forecasts that aircraft movements and total cargo handled will also grow in the coming years.

Dino D'Amore
By Dino D'Amore January 26, 2016 20:48