Reduction in Airline Capacity is Bottoming Out, Says OAG
Some carriers plan to add seats in mid-May >>
by: Harvey Chipkin
The reductions in airline capacity are slowing and should be bottoming out soon, according to the latest report from OAG, the industry consultants. Last week saw a 7% reduction in seats, one of the slowest rates of decline since mid-March, but now representing a total cut of nearly three quarters in total capacity. The industry is now down to 29.8 million seats a week with further cuts expected in the next few weeks. Supported by strong domestic capacity, although not demand, markets such as Japan, the US, Indonesia and Saudi Arabia continue to show much smaller rates of decline than the rest of the world. Nearly 9 in every 10 seats scheduled this week will be on domestic flights compared to 6 in 10 at the beginning of the event. Quite a few airlines, said OAG, plan to add capacity beginning in the middle of May. John Grant, OAG analyst, said, “we will have a look at some of that data in the coming weeks and identify more of the green shoots of recovery that will be coming along. But as always; only time will tell.”
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