The International Air Transport Association (IATA) says the second edition of the World Financial Symposium (WFS) will focus on industry efforts to support sustained financial health.
WFS will be held 14-17 September in Barcelona, Spain against a backdrop of improving industry profitability. Airlines are expected to earn a net profit margin of 4% which will equate to a $29.3 billion net profit in 2015.
‘After many years of hard work and restructuring, the airline industry on average is finally earning its cost of capital,’ says Tony Tyler.
‘This is a significant achievement but it needs to be put into perspective. Firstly, we must recognise that for any other industry, earning the cost of capital is not an extraordinary achievement, rather it is the minimum performance expected. So airlines will have to generate these ‘normal returns’ regularly to attract the $5 trillion of capital to support the doubling of demand expected over the next two decades.
‘Secondly, sustainable profitability needs to be widespread. Over half of the industry’s profit this year is expected to be generated in North America. Some airlines are doing very well. But for many, keeping revenues ahead of costs is still a real struggle where success is anything but guaranteed.’
A nationwide survey has found that 89% of travellers believe Jetstar’s planned regional flights are a good idea, with support rising to 94% in the regions.
Jetstar commissioned the independent research following its announcement in June that it would begin regional services later this year to four destinations.
Those under consideration are Hamilton, Rotorua, Tauranga, Napier, New Plymouth, Palmerston North, Nelson and Invercargill.
The online survey was carried out by 900 travellers in July, with respondents evenly split between those living in regional and main centres. All had taken at least one regional domestic flight in the past year.
Key reasons that travellers supported the expansion were cheaper fares, more competition and more choice.
The survey found that around two out of three travellers (63%) thought the regional flights they had taken in the past 12 months did not represent value for money, and this feeling was higher in the regions (67%) than in metropolitan areas (60%).
Nearly all travellers believed Jetstar’s entry into regional markets would boost passenger numbers, with 95% agreeing that more people would fly into the regions if cheaper fares were available. Eighty seven percent of all respondents said they personally would consider flying regionally more often if fares were cheaper.
The survey also asked people living outside Jetstar’s current markets of Auckland, Wellington, Christchurch and Otago if they had ever driven to another city to catch a domestic flight because of the cost of regional services. Of the more than 400 regional flyers surveyed, 68% said they had made a road trip to save money before taking to the air domestically.
Air Tahiti Nui has released a number of new packages.
The packages, which all include return flights from Auckland to Tahiti with Air Tahiti Nui, accommodation and transfers, start from $1569 for a four night stay in Tahiti.
On sale now until 7 August 2015, the offers include:
• A four night stay at Le Meridien Tahiti in a standard room, with return economy flights and transfers, from $1569 per person twin share.
• A seven night trip featuring five nights at the Moorea Pearl Resort & Spa in a garden view room with breakfast daily, two nights at Le Meridien Tahiti, return economy flights and transfers throughout, including inter island ferry, from $2365 per person twin share.
• Seven nights including five nights at the St Regis Bora Bora in a superior overwater villa with cooked breakfast daily and one three course dinner for two people, two nights at Le Meridien Tahiti, return economy flights and transfers throughout, including inter island flights, from $6119 per person twin share.
Air Tahiti Nui has also released a special airfare for sale until 7 August 2015, with travellers able to fly from Auckland to Papeete from $929 per person return in economy class and $2229 per person return in business class inclusive of fuel surcharges and taxes.
Travel must be completed by 31 May 2016.
Aircalin has released special shortlife airfares to Noumea: ex Auckland from $589 return; ex Wellington from $707 return and ex Christchurch from $737 return.
On sale until 17 July 2015 and valid for travel until 1 April 2016.
Air Tahiti Nui is offering Auckland to Los Angeles fares, with a short transit in Tahiti, between 17 January and 31 May 2016 from $1249* return in economy class. A mid-morning arrival in Los Angeles also allows for convenient same day transfers to more than 80 cities in the United States, Canada and Mexico.
Departures from Dunedin, Christchurch, Gisborne, Napier, Nelson, New Plymouth, Palmerston North, Wellington and Queenstown are also available for a surcharge.
The sale runs until 31 July 2015 and is available on the airline’s three weekly flights to Los Angeles.