Traffic gains scant comfort for Euro assembly delegates
A steady rise in traffic and load factors might seem like good news for the airline delegates gathered at the European Regions Airline Association (ERA) ge

A steady rise in traffic and load factors might seem like good news for the airline delegates gathered at the European Regions Airline Association (ERA) general assembly in Vienna from September 29 to October 1. But as airlines turn to “fierce cost cutting” to attract passengers, reality muted any calls for celebration during the three-day event.

ERA airlines saw a 4.3-percent increase in passenger throughput and a 4.4-percent jump in traffic (revenue passenger miles) through the first six months of this year. But declining yields remain a concern as fares averaged about a third lower than those collected in 2001. At very close to 60 percent, passenger load factors rose almost two percentage points over last year and analysts expect them to keep climbing. ERA attributes the gains to lower growth in seating capacity than in traffic.