NEW analysis from Amadeus’ Air Traffic solution reveals that low-cost carriers (LCCs) in the Middle East are showing significant confidence in their potential for growth, having witnessed an overall increase in seat capacity from 11.5 million in the first half of 2012 to 13.5 million during the same period in 2013.
The findings further highlight that low-cost carriers (LCCs) have seen an overall increase of 6.8 per cent in seat capacity globally in 2013. The analysis also paints a picture of strong capacity growth in Asia and modest increases across Europe and North America.
Low-cost carriers in Indonesia, India, Thailand and Malaysia were responsible for half of total, global, LCC capacity growth. Asia showed the strongest growth rates of any region with a 28 per cent overall increase to reach 129 million departing LCC seats in the first six months of 2013. When capital cities are examined, it is evident that capacity increases are being driven by emerging Asian nations. Jakarta saw the strongest absolute LCC capacity growth of any capital, increasing by 44 per cent, closely followed by Bangkok, up 30 per cent. In addition, the heavily developed Tokyo market also saw a significant increase in LCC seat capacity, which suggests the traditional focus on full service, could be changing.
Europe’s 0.8 per cent overall LCC capacity growth masks a far more complex picture: across much of Southern Europe LCCs have reduced capacity, with Madrid seeing a fall in LCC departing seat capacity of 27 per cent, the highest of any capital city in the region. Athens and Rome also saw significant percentage decreases. This picture contrasts sharply with the situation in much of Eastern and Northern Europe where Warsaw witnessed an enormous jump in LCC capacity, up 63 per cent year-on-year and now representing 27 per cent of total departing capacity from the city. Istanbul and Copenhagen also saw LCC capacity increase sharply.
On a global basis, London’s LCC seat capacity is by far the largest of any city with nearly 15 million available LCC seats. That is roughly 1.5 times the number of available seats at the next largest LCC city, Sao Paulo. However, the rates of growth occurring at Jakarta and Kuala Lumpur suggest the third and fourth placed cities may move up the top ten ranking over coming years.
Alexandre Jorre, LCC specialist, Amadeus, commented: “With a 25 per cent year-on-year rise over the first half of 2013, LCC bookings in Amadeus are growing significantly, which is a very encouraging sign that our ability to adapt to LCC distribution needs is proving attractive to both travel agents and airlines.”