Quote:
Originally Posted by Kain C
Last year HBA-MEL load factor was 81.4% in April and 78.8% in May, so it is hardly struggling, especially over Easter where this year there aren't even any seats available on some days!
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Well thats the case when carriers "combine" flights few weeks beforehand. At a full schedule it would have been 50%. Tiger dropped its second daily which resulted in 40% loads into 70-80%. Jetstar saw it coming and pulled back early
Easter is different being peak season, but May into mid June is the problem. Even worse this year is higher oil prices which is putting quite alot of strain on the profitability on all carriers. Note Jetstar's profitability in the first half of 2010 of 10m (and thats pre-tax) , and Tiger's Q3 profit last year of 2m not to mention Virgin's significant profit downgrade. In fact in the first half of 2010, Virgin ceded 7% of market share to Tiger. Really shows how difficult this period is, could be in for the same again.