Media

11 June 2011: Traffic figures for May 2011 are subject to some distortion when compared to May 2010 because of the impact of the 2010 Icelandic volcanic ash crisis on the May 2010 figures. However, when adjustments are made to compensate for the volcanic ash, en route traffic movements for May 2011 (traffic transiting between Europe and North America and which do not land at Irish airports) show an increase of circa 5%.

The numbers of commercial terminal flights at Dublin, Shannon and Cork were also affected by the 2010 volcanic ash crisis. However, analysis of the figures shows that traffic remained almost static showing an increase of less than 1%.

Meanwhile, EUROCONTROL have noted in their latest published short term forecast that 2011 is expected to see 3.2% growth in flights across Europe, a downwards revision on the last publication. This traffic forecast indicates;

*       the fairly certain bounce-back from the ash-cloud disruptions which will add 1% point to total growth in 2011.
*       and the much less certain traffic recovery hinted at by the continuing high load factors, as air carriers continue to search for the right level of capacity and to make other structural changes to their offers to try to match the much-changes post-economic crisis demand.

Separately, results from IATA's Airline Financial Monitor, point to a significant deterioration in sentiment on the outlook for industry profitability in 2011. IATA have substantially reduced their forecast for airline industry net post-tax profits in 2011 to $4bn, less than half the $8.6bn forecast in March 2011; which is largely due to the demand shocks from Japan and MENA, and a further $20 per barrel rise in oil prices.

END