Angela Gittens

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ANGELA GITTENS Interview with ACI’s Director General THE MAGAZINE 03 | JULY - SEPTEMBER 2018 INDEX 3 16 22 Editorial HERMES News Events Dr Kostas Iatrou Air Transport Club has been ECAC-CEAC 36th Plenary Director General, succeeded by the Hermes - (Triennial) Session of Hermes - Air Transport Organisation Air Transport Organisation the European Civil Conférence • Plenary Session 18 Summary Ownership and Control in Airlines • The Regulatory Environment for a Successful Airline Industry 18 29 6 • The Director General of Hermes participates The Fourth Annual ICAO World Top News in the 36th Plenary 20 Aviation Forum | 17-19 September July-September 2018 • 4TH ICAO World Aviation Fotraleza, Brazil Latest Industry News and Updates Forum (IWAF/4) 20 • Arab Air Carriers Organization and Hermes signed a Partnership Exchange Memorandum of Understanding 21 • The 2018 Hermes Report Committee met in Athens 21

Copyright © 2018: HERMES | Air Transport Organisation Material (either in whole or in part) from this publication may not be published, photocopied, rewritten, transferred through any electronical or other means, without prior permission by the publisher. THE MAGAZINE 03 | JULY - SEPTEMBER 2018 INDEX 32 39 Interview Statistics Angela Gittens ACI’s Director General june - august 2018: Air Passenger Market Analysi 43

42 Statistics

37 APR-JULY: Worldwide Traffic Articles Results Goldair Handling: Passenger traffic/Freight volumes Ground Handling: Behind the Scenes (Summary) Dimitris Papamichail Chief Executive Officer (CEO) Goldair Handling 48 Statistics

JUL-SEPT 2018: Economic Development Air Transport Monthly Monitor (Domestic and International) EDITORIAL

Dr Kostas Iatrou Director General Hermes - Air Transport Organisation

Dear Hermes members,

I would like to welcome you to the third issue of The Magazine. I am pleased to inform you that Hermes - Air Transport Organisation was officially registered with the Government of Quebec on 10th July 2018 as a not for profit organisation. With its new status Hermes will be able to cooperate more closely with the different stakeholders of the air transport sector. Hermes secretariat received nine position papers from the aviation stakeholders on the topic of ownership and control in airlines, namely from ACI, IATA, CANSO, Word Bank, AACO, AFRAA, AASA, ECAC and ERA. The 2018 Hermes Report Committee under the lead of the ex-Secretary General of ICAO and Honorary Member of Her- mes, Raymond Benjamin, met in Athens between 20-22 September and came up with the summary on the topic of ownership and control in airlines, which is presented in this issue. In June I had the pleasure to participate in the 36th Plenary Session of the European Civil Aviation Conference after the invitation we received from ECAC. In July Hermes signed its first Memorandum of Understanding with the Arab Air Carriers Organization (AACO). Finally, we have the pleasure to host an interview with Angela Gittens, Director General of ACI.

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6/07/2018 Boeing and Embraer to Establish Strategic Aerospace Partnership to Accelerate Global Aerospace Growth Boeing (NYSE: BA) and Embraer (B3: EMBR3, NYSE: ERJ) announced they have signed a Mem- orandum of Understanding to establish a strate-

gic partnership that positions both companies to Source: Airbus accelerate growth in global aerospace markets. The non-binding agreement proposes the for- 10/07/2018 mation of a joint venture comprising the commercial aircraft and services business of Embraer Airbus introduces the A220-100 and that would strategically align with Boeing’s com- A220-300 mercial development, production, marketing and Airbus has revealed the A220 at a ceremony held lifecycle services operations. Under the terms of at its Henri-Ziegler Delivery Centre, near Tou- the agreement, Boeing will hold an 80 percent louse. Witnessed by Airbus employees and mem- ownership stake in the joint venture and Em- bers of the global news media, the A220-300 braer will own the remaining 20 percent stake. landed directly from the painting at 12:25 am CEST wearing its new Airbus name and colours. The A220 family comprises two models, the A220-100 and A220-300, formerly Bombardier Inc.’s C Series (CS100 and CS300). The aircraft are fully optimized for the 100 to 150 seat market and perfectly complement Airbus’ existing best-selling A320neo family.

16/07/2018 ICAO Secretary General highlights continued progress on compliance as key to Africa’s aviation development ICAO Secretary General Dr. Fang Liu concluded the UN aviation agency’s 2018 ‘AFI Week’ series of events last week, reaffirming that the continent has now established the necessary partnership and policy foundations to help African States realize the full socio-economic potential of future air transport growth. “Aviation is recognized as crucial to the achievement of the United Nations Agenda 2030 Sustainable Development Goals. It supports almost seven million jobs and generates more than 72 billion dollars in Gross Domestic Prod- uct (GDP) in Africa,” the ICAO Secretary General declared. Source: ICAO

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16/07/2018 Air France, KLM Royal Dutch Airlines, China Southern Airlines and Xiamen Airlines now form a single joint venture The four airlines are merging their two existing agreements to create a single Source: Airbus joint venture; -A simplified and streamlined trip for 19/07/2018 1,250,000 passengers carried on average First BelugaXL becomes airborne per year via this for its maiden flight global alliance; -Air France-KLM consolidate its position Source: Airbus on the Chinese air transport market. The first BelugaXL took off this morning from Blagnac in Toulouse, France at 10:30 hrs local time, for its maiden flight over south-western France. The aircraft is the first of five Belu- gaXL to enter into service later in 2019 and to gradually replace the BelugaST transporters. 19/07/2018 Boeing Showcases the Future of Aerospace with Successful Farnborough Airshow, Announcing $100 Billion in Orders and Commitments Boeing (NYSE: BA) strengthened its position as the global leader of the aerospace 20/07/2018 industry, booking historic orders and showcasing its innovation and strategy for Delta and WestJet to create new growth at the Farnborough Internation- transborder joint venture al Airshow. At the close of the industry Delta Air Lines (NYSE:DAL) and WestJet (TSX: portion of the show, Boeing announced a WJA) have signed a definitive agreement to cre- total of $98.4 billion in orders and com- ate a comprehensive transborder joint venture mitments for commercial airplanes at list arrangement that will offer customers an exten- prices and $2.1 billion in commercial and sive route network within the U.S. and Canada. defense services orders and agreements. The agreement deepens the existing codeshare Boeing marked an outstanding week for partnership between the carriers and follows order capture in commercial aviation, with the signing of a memorandum of understand- customers announcing 673 orders and ing in December 2017 announcing the intention commitments in total, reflecting a contin- to form a joint venture. The joint venture will ued resurgence in demand for freighters provide substantial reach into Canada and the and strong order activity for the 737 MAX U.S. with transborder service to more than 30 and 787 passenger airplanes. Boeing se- cities covering over 95 per cent of U.S.-Canada cured 48 orders and commitments for the demand, providing customers of both airlines 777F, five for the 747-8F, reflecting con- with more travel choices than ever before. The tinued strengthening in the cargo market new JV will also enable Delta and WestJet to globally. compete more effectively against other carriers.

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23/07/2018 Boeing Forecasts Unprecedented 20-Year Pilot Demand as Operators Face Pilot Supply Challenges Boeing [NYSE: BA] today released its 2018 Pilot & bling of the global commercial airplane fleet — as Technician Outlook, projecting demand for 790,000 reported in Boeing’s Commercial Market Outlook — pilots over the next 20 years. This represents double as well as record-high air travel demand and a tight- the current workforce and the most significant de- ening labor supply. This year’s outlook also includes mand in the outlook’s nine-year history. data from the business aviation and civil helicopter The demand is being driven by an anticipated dou- sectors for the first time.

25/07/2018 European Commission adopts new rules on mental fitness of aircrew This week, the European Union adopted new safety ment of pilots before commencing flying; rules to sharpen the mental fitness rules for pilots and • Introduce systematic testing for psychoactive sub- cabin crew. The new rules follow the lessons learned stances of flight and cabin crew upon employment from the Germanwings flight 9525 accident in 2015 and unannounced testing after rehabilitation and and introduce the following requirements: return to work; • Give all pilots access to a support programme in • Make random alcohol testing of pilots and cabin case of psychological problems; crew mandatory for all European and foreign air- • Oblige airlines to perform a psychological assess- lines in the European Union.

29/07/2018 Airlines and Airports Have their Eyes Open to Human Trafficking In support of the United Nations World Day Against Trafficking in Persons, Airports Council International (ACI) World and the Internation- al Air Transport Association (IATA) emphasized their joint commitment and work to help combat human trafficking. Aviation connects the world, carrying more than four billion passengers a year, but this global network is also used nefariously by traffickers to transport people against their will. Airlines and airports are determined to assist authorities by reporting suspected human trafficking cases, and making it as difficult as possible for the global air transport network to be exploited for this evil trade, which af- fects some 25 million people annually. The industry is committed to raising awareness, helping to train staff to recognize the signs of trafficking, and putting in place reporting protocols to alert the appropriate authorities.

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30/07/2018 13/08/2018 Safety Investigation Report: Delta launches industry-first aligned Malaysia Airlines Boeing B777- corporate benefits program with Air 200 ER (9M- MRO) 08 March 2014 France-KLM This Safety Investigation Report (Report) Delta and its joint venture partner Air France-KLM are builds on the previous Factual Information launching an industry-first program of aligned benefits Report and extends the available informa- for corporate customers to enhance their travel experi- tion publicly released to include analysis, ence, including better seats and priority boarding. findings/conclusions and safety recom- The latest milestone to deliver the best international mendations. Recognising that at the time experience for corporate customers, Global Corporate of issue of this Report, the main aircraft Priority aligns the most highly valued corporate travel- wreckage, including the aircraft’s Flight er benefits, based on customer feedback. Beginning in Data Recorder (FDR) and Cockpit Voice the fourth quarter of 2018, Delta, Air France and KLM’s Recorder (CVR) have not yet been locat- joint corporate travelers will enjoy the following bene- ed, this Report will necessarily be limited fits, regardless of which airline they’re flying and which by a significant lack of evidence. airline they booked their ticket through. Based on the available evidence, the analysis of factors considered relevant to the disappearance of MH370 include: • Diversion from Filed Flight Plan Route; • Air Traffic Services Operations; • Flight Crew Profile; • Airworthiness & Maintenance and Air- craft Systems; • Satellite Communications; • Wreckage and Impact Information; • Organisation and Management Informa- tion of DCA and MAS; and • Aircraft Cargo Consignment. Other factors examined by the investigation and not considered relevant include the aircraft weight and balance, the amount and quality of fuel on-board and meteorological conditions.

Source: ICAO

1/08/2018 14/08/2018 Transport Canada Certifies 90- ICAO and South Africa partner on major Seat Cabin Configuration for step forward for gender equality in Bombardier’s Q400 Aircraft global aviation Bombardier Commercial Aircraft an- In a major step forward for gender equality and gender nounced today that its 90-passenger Q400 action in international air transport, ICAO and South aircraft configuration has received its cer- Africa’s Civil Aviation Authority (SACAA) were joined tification from Transport Canada, becom- by over 500 leaders and experts from around the world ing the first in-production commercial tur- in Cape Town for the opening of the first-ever Global boprop in the world to reach that capacity. Aviation Gender Summit.

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16/08/2018 Board of Directors appoints Benjamin Smith as Air France-KLM CEO Benjamin Smith is a reputed senior airline industry executive at international level. He has played a major role at Air Canada over the past two decades, where he has been a key player in the airline’s economic and commercial development, its transforma- tion, its value creation and the engagement of the Source: Air France teams. Until today, he was Air Canada’s President Airlines and Chief Operating Officer. Benjamin Smith will take up his duties at Air France-KLM at the latest on September 30, 2018. In the meantime, the interim governance structure established on May 15, 2018 will remain in place. Anne-Marie Couderc, non-executive Chairman of the Air France-KLM and Air France Boards, and the Management Committee consisting of three members, will continue to perform their duties until then.

20/08/2018 Significant Growth in Aviation Jobs Expected IATA Survey Reveals Challenges in Talent Acquisition and Training The International Air Transport Association (IATA) published the results of a global survey of Human Resources professionals in the 23/08/2018 aviation industry highlighting key challenges TIACA’s new in talent acquisition, training and retention: online Cargo • More than 73% of respondents expect the Service Quality major areas of job growth to be in ground (CSQ) tool operations, customer service and cabin crew. TIACA’s new online Cargo Service Quality • 48% report that finding new talent is a (CSQ) tool is aimed at improving visibility challenge, both because of the lack of and facilitating global standards across the availability of candidates with the right air cargo supply chain. Over the summer 18 skill levels and qualifications as well as, in airports and 179 forwarders participated in a some cases, salary demands of new appli- pilot program, to astounding success. TIACA cants. Board member Cheemeng Wong is Senior Vice • In addition to the salary and benefits President Cargo Services at SATS Ltd, which package of each employee, the HR profes- took part in the CSQ pilot. Below, he shares his sionals identified career progression op- experience of the program and what it means portunities (49%) and development and for airfreight. training (33%) as high priorities in job satisfaction and retention. Qantas has today announced an extension of • Only 28% of respondents reported that its global lounge improvement program current training is effective, with many or- The Qantas Group has reported an Underly- ganizations seeking to complement their ing Profit Before Tax of $1.6 billion for the in-house training with external partners to 2018 financial year – a record for the nation- improve the effectiveness of the training. al carrier.

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26/08/2018 Airbus Perlan Mission II soars to over 62,000 feet, setting second altitude world record and crossing Armstrong Line Perlan Mission II, the world’s first initiative to pilot an engineless aircraft to the edge of space, made history again in El Calafate, Argentina, by soaring in the stratosphere to a pressure altitude of over 62,000 feet (60,669 feet GPS altitude). This set a new gliding altitude world record, pending official validation. The pressurized Perlan 2 glider, which is designed to soar up to 90,000 feet, passed the Armstrong Line, the point in the atmosphere above which an unprotected human’s blood will boil if an aircraft loses pressuriza- tion. This marks a second glider altitude world record for Jim Payne and Morgan Sandercock, the same two Per- lan Project pilots who soared the Perlan 2 to 52,221 feet GPS altitude on Sept. 3, 2017, in the same remote region of Argentine Patagonia. The 2017 record broke a previous record that was set in 2006, in the unpres- surized Perlan 1, by Perlan Project founder Einar Enevoldson and Steve Fossett.

Source: Airbus

27/08/2018 ACI World’s new policy paper will help airports respond to the rapid growth in drone use In response to the rapid growth of the drone and Re- To aid this process, the ACI World Governing Board motely Piloted Aircraft Systems (RPAS) market world- requested the ACI World Safety and Technical Stand- wide, Airports Council International (ACI) World has ing Committee to develop a comprehensive policy today launched a policy paper on drones providing paper, following on from the ACI advisory bulletin informed and practical recommendations for airports. on Drones and Remotely Piloted Aircraft Systems is- Drone operations are expected to soon surpass the sued in 2016. number of manned aircraft operations and airport op- The policy document aims to ensure that useful drone erators have a vested interest in the development of operations are facilitated without negative impact to regulations and standards that determine how drones the safety, security, efficiency or capacity of airport will be integrated into the aviation system. operations.

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27/08/2018 Boeing Forecasts Greatest Demand for Pilots, Technicians, Cabin Crew in Asia Pacific Region Boeing [NYSE: BA] reports that the Asia Pacific region will have the greatest global demand for new civil aviation personnel over the next 20 years. The region is projected to account for 33 percent of the global need for pilots, 34 percent for technicians and 36 percent for cabin crew. The 2018 Boeing Pilot & Technician Outlook is an industry forecast of new aviation personnel demand. It is closely tied to projections for new airplane deliveries around the globe. As with personnel demand, the Asia Pacific region leads demand for new commercial airplane deliveries over the next 20 years. Forty percent of all new passenger airplane deliveries in the next 20 years will be delivered to airlines in the Asia Pacific region. According to the outlook: • The 20-year demand for new commercial sector pilots in the region remains strong at 240,000. While demand decreased five percent, this was driven by regional trends that indicate a peak in pilot retire- ments in the first decade of the forecast and a softening of replacement demand in the later years, due to a younger generation entering the pilot ranks long before reaching mandatory retirement age. • New commercial technician demand decreased five percent to 242,000. This is due to advancements in product development on the 737 MAX, which have resulted in increased maintenance efficiencies. Overall, maintenance hours required over the life of the airplane will be reduced. • New commercial cabin crew demand increased three percent to 317,000 due to anticipated fleet mix, cabin configuration and regulatory requirements.

2/09/2018 5/09/2018 Airbus Perlan Mission II Latest edition of ICAO Safety Report glider soars to 76,000 feet confirms 2017 as aviation’s safest year to break own altitude ICAO works in partnership with the international avi- record, surpassing even U-2 ation community to improve safety, with an emphasis reconnaissance plane on improving safety performance through standard- or the third time in a week, Airbus Perlan ization, monitoring and implementation. The 2018 Mission II has set a new world altitude record edition of the ICAO Safety Report, released this week, for a glider, this time soaring the engineless provides a high level summary of ICAO’s safety ini- Perlan 2 to 76,124 feet, in the process collect- tiatives and achievements to enhance aviation safety ing vital data on flight performance, weath- in 2017, along with key safety performance indicators er and the atmosphere. Pilots Jim Payne and pertaining to the 2013–2017 time period. Tim Gardner surpasses even the maximum In 2017, there were 4.1 billion passengers travelling recorded altitude in level flight of the U.S. by air worldwide on scheduled commercial services. Air Force’s famous U-2 Dragon Lady reconnaissance aircraft: 73,737 feet, flown by pilot Tragically, these flights resulted in 50 fatalities. None- Jerry Hoyt on Apr. 17, 1989. theless, this rate of 12.2 fatalities per billion passen- • Aug. 26, 2018: Jim Payne and Morgan gers represents the safest year ever on the record for Sandercock soar to 63,100 feet, besting aviation. The number of fatal accidents also decreased, the record of 54,000 feet set by Airbus to 5 from 7 in 2016, which is also the lowest on the Perlan Mission II on Sept. 3, 2017 recent record. Despite a spike in fatalities due to a • Aug. 28, 2018: Jim Payne and Miguel number of acts of unlawful interference in 2014 and Iturmendi reach 65,600 feet the tragic events which caused significant loss of life • Sept. 2, 2018: Jim Payne and Tim Gard- in 2015, there was a general trend of lower number ner climb to 76,124 feet of fatal accidents and fatalities over the past ten years.

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12/09/2018 Turkish Airlines brings a new elegant style to the skies with its new cabin crew uniforms In celebration of 85 successful years, Turkish Airlines has unveiled a fresh look with a new uniform specially designed for its cabin crew. The new uniforms will begin to be used following the opening of the Istanbul New Airport, the “new home” of the flag carrier airline. Inspired by many classic elements of Turkish design and culture, the new uniforms incorporate traditional patterns found in artisanal glassware, ceramics and calligraphy with contemporary textures and details. The collection combines shapes and colours found in Istanbul Bosphorus with a new ‘flow detail’, created to symbolise the effortless and dynamic energy flowing through Turkey’s most dynamic city as an intersection between East and West.

Source: Turkish Airlines

13/09/2018 17/09/2018 World’s First Electronic Stefano Bortoli Dangerous Goods appointed CEO of ATR Declaration Handled at ATR, with the unanimous sup- Frankfurt Airport port of its shareholders Airbus Lufthansa Cargo, using the INFr8 and Leonardo, has appoint- platform, has handled the world’s ed Stefano Bortoli, currently first dangerous goods shipment President of the ATR Board with an electronic Dangerous and Senior Vice President Goods Declaration (eDGD) at Strategy, Marketing Develop- Source: ATR Frankfurt Airport. A shipment from ment and Sales of Leonardo healthcare giant Abbott Diagnostics Aircraft Division, as new CEO of ATR with immediate effect. in Wiesbaden was flown on board This follows the announcement last week by Airbus appointing cargo flight LH8222 to Mexico City Christian Scherer as its Chief Commercial Officer.

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17/09/2018 Cathay Pacific, Boeing to donate world’s 1st 777 to aviation museum Cathay Pacific and Boeing announced today that they are donating the first-ever Boeing 777 airplane to the Pima Air & Space Museum in Arizona, one of the world’s largest facilities devoted to celebrating aerospace.

Source: Cathay Pacific

20/09/2018 ACI World publishes annual World Airport Traffic Report Airports Council International (ACI) World today published the 2018 edition of its Annual World Airport Traffic Report (WATR) which found that global passenger and cargo growth remained resilient and robust in the face of threats from trade and political tension around the world. All regions experienced growth with a robust year-on-year global passenger increase of 7.5% in 2017 over 2016, one of the strongest growth rates on record. Air cargo also experienced a revival across many of the world’s airports in 2017, posting a record-breaking jump of 7.7% from the previous year. As well, aircraft movements increased by 3% in 2017, the highest annual percentage growth increase since 2004. All told, the world’s airports accommodated 8,277,676,508 passengers, 118,612,750 metric tonnes of cargo, and 95,772,011 aircraft movements. Aviation’s centre of gravity continued to shift eastward in 2017. Most of the world’s fastest-growing large airports are located in emerging markets; 16 of the fastest-growing top 30 airports with over 15 million passengers are located in just two countries, China and India.

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21/09/2018 Bombardier Delivers First 90-seat Q400 Aircraft to SpiceJet Bombardier Commercial Aircraft today announced the delivery of its first 90-seat Q400 aircraft. The aircraft was handed over to India’s SpiceJet Limited (“SpiceJet”) the launch operator for the extra-capacity, 90-seat aircraft. Source: Bombardier

26/09/2018 Airbus A330-900 receives EASA Type Certification The A330-900 has received its Type Certifica- tion from the Eu- ropean Aviation Safety Agency (EASA). The aircraft is powered by Rolls-Royce Trent 7000 en- gines. The Type Certificate was signed by EA- SA’s Certification Director, Trev- or Woods, and

handed over by Source: Airbus EASA’s Head of Large Aeroplanes Certification, Ludovic Aron, to Airbus’ Head of Engineering for Commercial Aircraft, Jean-Brice Dumont. Federal Aviation Administration (FAA) certification is expected to follow shortly.

26/09/2018 ACI signs Memorandum of Understanding with Aerocivil to promote airport excellence in Colombia Airports Council International (ACI) World and Unidad Administrativa Especial de Aeronautica Civil de Colombia (“Aerocivil”) have signed a Memorandum of Understanding (MoU) that will see enhanced cooperation on vital airport programmes and initiatives, including airport safety and security reviews, customer experience solutions and training, to promote operational excellence at the country’s government-owned airports. The agreement will also see the deployment of peer review missions from ACI to help Aerocivil evaluate their airport infrastructure projects and initiatives.

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We are pleased to inform you that Hermes Air Transport Club has been succeeded by the Hermes - Air Transport Organisation ermes - Air Transport Organisation has been officially The Member of the Board of Directors are : registered with the Government of Quebec on 10th H Vijay Poonoosamy, President July 2018 as a not for profit organisation. Robert Deillon, Vice President & Treasurer The purposes of Hermes - Air Transport Organisation Dr Kostas Iatrou, Secretary & Director General (Hermes) remain the same, namely: Angela Gittens, Member Hermes is a not for profit Organisation that represents Henrik Hololei, Member individuals who are widely perceived and acknowledged Jeff Poole, Member as leading personalities/professionals in the air transport sector. Hermes - Air Transport Organisation has the following classes of Members:

Regular Members Any person interested in promoting the Mission and Aims of Hermes and who has contributed to aviation at a leadership level for at least 5 years may become a Regular Member. The Mission and Aims of the Organisation are: Permanent Members The status of Permanent Member may be granted to any person interested in promoting the Mission and Aims of Hermes and A. To provide a worldwide forum for networking and who has contributed to aviation at a leadership level for at least 10 years. exchange of ideas among its members; Lifetime Members B. To contribute to the development, progress and The Directors may grant the status of Lifetime Member to any person interested in promoting the Mission and Aims of Hermes promotion of air transport at a global level; and who has contributed to aviation at a leadership level for at least 15 years. Lifetime Members will pay a prescribed fee in C. To promote and present to the wider public lieu and instead of annual fees. the work of aviation and its contribution to the Associate Members economic, political and social development Any person who does not meet the conditions for becoming around the world; a Regular Member but who demonstrates an intention to promote the Mission and Aims of Hermes and has been closely D. To collaborate, as a bridging platform, with all associated to aviation at a leadership level for at least 3 years key stakeholders in the air transport sector, and may be accepted as an Associate Member. partner with Higher Education Establishments in Honorary Members the field; Each year the Directors may designate as Honorary Members of Hermes persons who have made and may continue to be making highly distinguished contributions to aviation at a top E. To recommend strategies and policies of added leadership level. With its new status Hermes will be able to value to all the stakeholders in the air transport cooperate more closely with the different stakeholders of the supply chain. air transport sector.

Every year there will be the Hermes Leaders Forum and AGM to elect the Board of Directors.

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17 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018 hermes news SUMMaRY Ownership and Control in Airlines The Regulatory Environment for a Successful Airline Industry

Air transport is a major contributor to the world against undertaken risks. Small markets and economy characterised by solid growth and in need inability to reap economies of scale and scope may of large capital injections. Global air traffic was significantly discourage investors who also prefer estimated at 3.7 billion passengers in 2017 (about to avoid funneling money into fragmented sectors 10 million passengers and 105,000 flights daily) characterized by hyper-competition. Moreover, and is expected to double by 2035. This amounts complexities in the regulatory environment and to a growth rate of approximately 4.5%, which is legal uncertainties create further disincentives for about twice as high the growth rate of world GDP. investment. These regulatory barriers may limit To accommodate this growth, it is forecasted that market size; allow inefficient carriers to remain afloat; about 37,500 new passenger and dedicated freighter and raise investment risks from a legal perspective. aircraft at a value of US$5.8 trillion will be needed In fact, these barriers may significantly inhibit over the next 20 years, compared to the current financial/portfolio investors, while the inability to fleet of around 26,000 aircraft. These already effectively control an airline may discourage strategic immense capital requirements are intensified by the investors and deny any potential synergies emerging need of airlines to fund other processes including at a systemic airline level. Securing financing from investments in big data analytical systems, product governmental sources is also a difficult issue. In customization and baggage handling. At present, the some regions, like in Europe, subsidizing airlines is Rate on Invested Capital (ROIC) is approximately forbidden for competition reasons. In several cases, 10%, while the Weighted Average Cost of Capital governments have other priority sectors to finance (WACC) is about 8%. Yet, this is only an industry rather than aviation. average across the 1,400+ commercial airlines Current attempts to circumvent the regulatory operating today in almost 4,000 airports around restrictions, whilst producing benefits, are not the world on about 53,000 routes. At a micro level, allowing the industry to realize its full potential. airlines are characterised by mixed success. Out In particular, there seems to be empirical support of the six different airline business models that that effectively dealing with ownership and control currently exist (i.e. full-service network, low fare, clauses either through circumvention or through charter, regional, all-business, all-cargo) two seem non-application by governments may have a positive to be prevalent, namely network and low fare with impact for the airline sector. The European Union a noticeable trend of hybridization too. Several has created new industry dynamics by substituting low fare airlines seem to perform well in terms national with community ownership and control of recording high profits and increased market clauses thus encouraging inter alia the development shares thus putting additional pressure on network of low fare airlines and allowing consolidation carriers to reduce their cost base and improve their through mergers and acquisitions among network product offering to lure not only passengers but also carriers. In Latin America, LAN has successfully investors. engaged in transnational acquisitions, creating Securing airline financing is faced by severe among others LATAM, while Australia and New difficulties. As in every industry including other Zealand have also adopted a liberal stance vis-à-vis parts of the air transport supply chain, investors international ownership and control of their carriers. are expected to carefully balance expected returns It is of interest also to note that even in parts of

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Ownership and Control in Airlines the world where national clauses in ownership and The successful airline industry that will emerge control are powerful, alternative market responses will be well-managed, attract investments, benefit are also possible. In fact, the establishment of the travelers and drive GDP growth. Regulatory barriers, three strategic alliances (i.e. Star, SkyTeam and such as ownership and control, are obstacles to the oneworld) among network carriers about twenty movement towards this emerging industry, but are years ago is certainly a success story in terms of not insurmountable obstacles. The barriers can be creating a seamless global network experience. lifted by governments or circumvented by airlines. Similarly, low fare airlines such as Air Asia/JetStar However, the barriers may remain in certain regions and Air Arabia have managed to establish a sold of the world due to the political will and priorities presence in Australasia and Middle East/North Africa of the countries in those regions. Ultimately a new respectively by establishing local subsidiaries. Yet, multilateral approach to airline regulation will only all these circumvention efforts, irrespective of how emerge under the auspices of ICAO. successful they may prove in the short- and possibly In conclusion in the medium term, add costs; raise complexity; Decision makers should consider the benefits of and create legal uncertainties. Thus, they fall being proactive in creating the environment that short of achieving the benefits of full integration will allow airlines access to the capital necessary to offered by a relaxation of ownership and control effectively compete in the industry. This may include clauses. Even the community clause introduced in relaxing ownership and control restrictions within the European Union may face legal challenges on a regional context. States should consider acting international routes and markets when third (i.e. in concert with like-minded states to seek regional non-EU) countries are reluctant to accept it in the solutions to develop the environment needed to renegotiation of their bilateral agreements. support aviation growth. Moreover, regional blocks In any case, financing will flow to the airlines that should develop a dialogue with other regional blocs investors believe are most likely to be successful. to facilitate aviation growth for the benefit of their Successful airlines will be the carriers that have the populations and economies. lowest operating costs and/or the greatest ability to Although ownership and control may not be seen generate revenues. For example, airlines that can as a major problem to some governments and best use customer data to develop ancillary revenues airlines given the advent of alliances and the other may be able to gain market share, since the ancillary workarounds employed to facilitate air transport, it revenues will allow the carriers to lower base fares. may be the case that the states that are proactive We see the future industry as one dominated by in developing policies that facilitate aviation growth carriers pursuing cost leadership and/or revenue will produce the winning airlines in the long run. generation models that extend beyond national boundaries. These carriers will have the access to 2018 Hermes Report Committee private financing necessary for fleet acquisition and Chairman will be able to gain market share over carriers that Raymond Benjamin, are more reliant on government financing. Clearly, Honorary Member, Hermes - Air Transport the industry will require a shift from a nationally- Organisation & ex Secretary General, ICAO based industry to a market that better allows for international growth. As an example, the European Members Union community carrier approach has allowed for - Robert Deillon, VP, the development of carriers with successful business Hermes - Air Transport Organisation models that offer consumers increased choices in air - Professor Martin Dresner, travel. This approach requires individual states to University of Maryland & President, ATRS recognize community-wide ownership and control - Professor Dr Andreas Papatheodorou, of carriers domiciled in the community of states. Editor-in-Chief, Journal of Air Transport Studies Other regional blocs could adopt similar approaches - Ulrich Schulte-Strathaus, to facilitate the creation of successful carriers. Managing Director, Aviation Strategy & Concepts

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The Director General of Hermes participates in the 36th Plenary (Triennial) Session (ECAC/36) r Kostas Iatrou, Director General of Hermes The Session is open to ECAC Member States. ICAO Member Dparticipated in the 36th Plenary (Triennial) Session States which are not members of ECAC, and a number of (ECAC/36) that took place at the European Parliament in international organisations, industry representatives, Strasbourg, France on 10 and 11 July 2018. Participation NGOs and press are invited to attend the meeting with in the Triennial Session is upon invitation only. observer status.

4TH ICAO World Aviation Forum (IWAF/4) t the Fourth ICAO World Aviation Forum held in Fortaleza from 17-19 September three Hermes Board Members Aparticipated as panelists, Angela Gittens, Director General of ACI and Jeff Poole, Director General of CANSO spoke on Investing for Growth–Strategies for Aviation Development and Dr Kostas Iatrou, Director General of Hermes spoke on Reaping Benefits–Multimodal and Intermodal Mobility to Enhance Air Connectivity.

Luis Felipe de Oliveira, Executive Director, ALTA, Dr Kostas Iatrou, Director General, Hermes - Air Transport Organisation, Michael Comber, Director, Member & External Relations, ICAO Affairs of IATA, Angela Gittens, Director General, ACI, Jeff Poole, Director General, CANSO.

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On the 23rd July the Arab Air Carriers Organization and Hermes signed a Partnership Exchange Memorandum of Understanding nder the partnership, AACO agrees to provide Hermes with a subscription Uto its Industry Partnership Programme. Under this programme Hermes will attend AACO Annual General Meeting and Forums . In return, Hermes agrees to provide AACO with a membership at the highest level offering all privileges and benefits Hermes provides to its members. Under this membership, AACO will attend Hermes meetings and conferences, will be entitled to present and discuss working papers during Hermes meetings.

The 2018 Hermes Report Committee met in Athens he 2018 Hermes Report Committee under the lead of the ex-Secretary General of ICAO and Honorary Member of THermes, Raymond Benjamin, met in Athens between 20-22 September and came up with the summary on the topic of ownership and control in airlines. The members of the committee are: Chairman Raymond Benjamin, Honorary Member, Hermes - Air Transport Organisation & ex Secretary General, ICAO Members -Robert Deillon, VP, Hermes - Air Transport Organisation -Professor Martin Dresner, University of Maryland & President, ATRS -Professor Dr Andreas Papatheodorou, Editor-in-Chief, Journal of Air Transport Studies -Ulrich Schulte-Strathaus, Managing Director, Aviation Strategy & Concepts

From left: Dr Andreas Papatheodorou, Raymond Benjamin, Dr Kostas Iatrou (Director General of Hermes), Ulrich Schulte-Strathaus and Professor Martin Dresner.

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ECAC-CEAC 36th Plenary (triennial) Session of the European Civil Conférence Strasbourg 10/11 July 2018

PHOTOS CREDIT @MarcDossman

Directors General of the 44 European Civil Aviation Conference (ECAC) Member States came together with high level representatives from a wide range of ICAO Member States and international organisations, including ICAO, the European Commission, EUROCONTROL, EASA, IATA and ACI-EUROPE, in order to debate current issues in international civil aviation and adopt the ECAC work programme and budget for the next three years.

22 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018 EVENTS ECAC-CEAC 36th Plenary (triennial) Session of the European Civil Conférence, Strasbourg 10/11 July 2018

Plenary Session

he President of the Council of ICAO Olumuyiwa Benard TAliu highlighted Europe’s status as one of the most liberalized and integrated air transport markets in the world.

He praised the Region for its high levels of safety and security even as it carries half of the world’s international passengers, but stressed that forecast growth poses significant challenges in this regard, and that States and operators alike could benefit from ICAO’s global planning as they seek to optimize the socio-economic benefits of increasing flight volumes in finite air space.

“The most important step which governments seeking to modernize and expand their air transport systems today can undertake is to work closely through ICAO and strengthen their ICAO compliance,” President Aliu remarked. “We have global strategies, plans, programmes and agreements in place to ensure that new civil aviation standards are continuously developed to address emerging challenges, and in particular I would emphasize the importance of the ICAO Global Aviation Safety and Air Navigation Plans.”

The ICAO President also updated the European audience on the recent progress made by the ICAO Coun- cil on the standards for its CORSIA emissions offsetting programme, set to commence in 2021, and set the stage for what will be decided at ICAO’s 13th Air Navigation Conference this October.

“Today we are exploring new methods to enhance global harmonization and interoperability, researching new technologies and innovations to continuously make air transport operations more safe, secure, efficient and environmentally-friendly, and we continue to advocate for the more liberalized multilateral approaches and open skies which are so vital to a truly global and accessible network,” he said.

“Taken together, air transport’s many and diverse benefits are of critical importance today to every country’s Sustainable Development Goals (SDGs), but in order to realize them, and improve local prosperity for their cit- izens and businesses, States must make due commitments to modernize and expand capacity, and to effectively implement ICAO’s global standards and policies.”

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ECAC-CEAC 36th PLENARY (TRENNIAL) SESSION ● Strasburg 10/11 July 2018

CAO Secretary General Fang Liu,emphasized that the 27 percent Iof global traffic managed by Europe today corresponds to some 11.9 million jobs being generated in the Region, and a €735 billion impact on local GDP. “With low-cost carriers being responsible for over 40 percent of the seats available to passengers travelling in Europe today, we may also wish to recognize the synergies between air transport affordability and sustainability,” she highlighted.

Dr. Liu also underscored that safety performance has been a key contributing factor to Europe’s air transport growth and success, and how its improved coordination had helped its States achieve particularly admirable ICAO safety oversight audit results. “I ap- preciate the important contributions ICAO has received from the Eu- ropean Aviation Safety Agency (EASA) and Eurocontrol toward these results, and how they represent such a positive example of enhanced pan-Regional coordination.”

Referring to the upcoming CORSIA capacity building being undertaken by the ICAO Secretariat, Dr. Liu noted that “States, industry and other stakeholders must commit to it together, to ensure that the CORSIA goals and objectives are met, and I would encourage Euro- pean States to take a leadership role in these initiatives. One early assistance effort in need of your support will be the CORSIA implementation ‘Train the Trainer’ sessions ICAO will be conducting this autumn at our Headquarters.”

She also recognized and supported ECAC’s objective to achieve greater pan-European harmonization on air transport policy priorities, and strongly emphasized the importance of maintaining momentum on the Region’s implementation of the ICAO Global Aviation Security Plan (GASeP).

“In light of how both aviation security threats and the methods to confront them are continuing to evolve, it is critical that your States plan and guide your cooperative progress on the basis of what the GASeP European and North Atlantic (EUR/NAT) Roadmap sets out, and to ensure that your national priorities continue to be aligned with the Plan’s provisions,” she remarked.

She concluded by noting that “as Europe has coalesced into a more unified region in the ensuing decades, we have also seen the role of ECAC, and its relationship with ICAO, evolving as well. I believe the current and admirable levels of coordination and partnership can be further enhanced, to the benefit of ICAO and ECAC and all States and Regions.”

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ECAC-CEAC 36th PLENARY (TRENNIAL) SESSION ● Strasburg 10/11 July 2018

irector General for Transport and Mobility of the European Commission Henrik Hololei, said: “If we Dlook back at what we have achieved since the last ECAC Plenary session, we can say that both European and global aviation have been doing very well. Last year, we celebrated 25 years of the European Single Avia- tion Market by surpassing the 1 billion passengers’ number, with 10.6m flights. Last year, European carriers had collective net profits of €7.8 bn (forecast 2018 is the same) and 2017 also marked the best year for European airports since 2004.

Capacity EUROCONTROL published the “Challenges of Growth” 2018 edition, which reinforces the same point that I have been making over the last years – namely that capacity on the ground as well as in the air is the most important medium and long term challenge aviation is facing.

In order to tackle this challenge we have identified at the EU level potential solutions through our Aviation Strategy for Europe.

Over the last years, we have progressed on many fronts in the implementation of our Aviation Strategy for Europe. Our objective with this Strategy was to equip Europe with rules that are adapted to the aviation of today and could serve the aviation of tomorrow.

CORSIA Less than two years after this historic agreement, our technical experts have designed a completely new Standard to implement such a scheme. European experts have played a decisive role in such design. Europe fought hard to maintain CORSIA environmental integrity and can be proud of the result. This is a major achievement. CORSIA is the first ever Global Market based mechanism applicable to a whole industry sector and a resolute step from the international community in its efforts to mitigate greenhouse gas emissions by taking sector-wide action at a global level.

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ECAC-CEAC 36th PLENARY (TRENNIAL) SESSION ● Strasburg 10/11 July 2018

EU external aviation Over the last years, we have made good progress in negotiations with important partners, notably with ASE- AN, Qatar, Turkey and others. We are expanding the European aviation space and deepening cooperation in multiple areas like safety, security, ATM modernisation, Flow Management widening around the globe.

I am convinced, today more than ever, that openness and multilateralism are the solution. Europe and aviation are two excellent illustrations of what we can achieve if we work together towards the achievement of common goals.

Openness and globalisation have helped to tear down borders, to open up the world and create a lot of business opportunities. It made the world a better place and has offered people freedom to travel but also the freedom to provide services and do business.

I would like to put particular emphasis on the issues of Ownership & Control that are historic remnants of this global, competitive and vibrant sector. We should have the courage to change and normalise the air transport industry in this particular domain. This is essential to facilitate airlines’ access to investments. The Assembly next year would be the obvious platform to express strong political support to the Convention that is currently being developed by the ATRP on the topic.”

he CEO and Director General of IATA, Alexandre de Juniac Tcalled on European policy-makers to take urgent action to ensure that Europe avoids an infrastructure crisis by: • Addressing the airport capacity crunch • Modernizing airspace management “160 million European fliers in 2040 will be disappointed because the infrastructure will not be able to cope with the volume of people needing to travel. And every person that cannot fly is a lost op- portunity that filters throughout the economy. Long-term, the only solution is investment in airports and air traffic management,” said de Juniac.

Environment De Juniac urged EU governments to focus on the successful implementation of CORSIA following the ICAO Council’s recent adoption of a comprehensive set of standards and recommended practices which set the detailed requirements for the implementation of CORSIA.

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ECAC-CEAC 36th PLENARY (TRENNIAL) SESSION ● Strasburg 10/11 July 2018 ECAC-CEAC 36th PLENARY (TRENNIAL) SESSION ● Strasburg 10/11 July 2018

“We can all be proud of the hard work that led to the historic CORSIA agreement—particularly Europe which raised the flag early on environmental issues. CORSIA is the agreed global economic measure. So while we are trying to implement CORSIA, it is disappointing to see a number of European states looking to implement new environment taxes on top of the EU ETS.” said de Juniac.

Brexit and Protectionism “Airlines—indeed all businesses—do better with greater degrees of certainty in the business environment. The headline uncertainty is finding agreement on Brexit conditions impacting aviation. Airlines are already selling tickets for the post-Brexit period. The EU and UK must move much faster to avoid disrupting passengers, trade and business.

“Longer term, the big uncertainty is protectionism and a retreat from globalization. Aviation is the business of freedom. It delivers its best when borders are open to people and trade. Policy-makers should facilitate its success because aviation is a powerful catalyst for an even more inclusive globalization,” said de Juniac.

Reminding of ECAC’s mission to promote safe, secure and sustainable air transport, ECAC Executive Sec- retary Salvatore Sciacchitano introduced the strategic discussions held on the first day of the Plenary which focused on defining the ambitions of European States for next year’s 40th ICAO Assembly Session in Montreal. Aviation security and facilitation, safety and air traffic management and aviation and the environment were each debated, in panel sessions whose members included senior figures in European aviation and beyond. The meeting also welcomed addresses from its sister regional organisations (ACAO, AFCAC, LACAC), other ICAO States (Israel, United Arab Emirates, United States) and international organisations (ITF, TIACA).

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ECAC-CEAC 36th PLENARY (TRENNIAL) SESSION ● Strasburg 10/11 July 2018

The meeting took some formal decisions in relation to ECAC’s principal officer appointments, work programme and budget for the next three years. It re- newed the appointment of Ms Ingrid Cherfils (Deputy Director General, Transport Agency, Sweden) as ECAC President, and elected Mr Patrick Gandil (Director General of Civil Aviation, France), Mr Alessio Quaranta (Director General of Civil Aviation, Italy) and Ms Silvia Gehrer (Director General of Civil Aviation Internation- al), Austria) as ECAC Vice-Presidents. The full membership of ECAC’s executive Coordinating Committee is available below.

At the close of the meeting, Ingrid Cherfils thanked its 170 participants for their contributions to what had proved to be fascinating, sometimes challenging, discussions, on which all would wish to reflect as ideas now began to be pulled together for specific proposals and positions to be taken to the next ICAO Assembly.

ECAC Coordinating Committee members appointed by the ECAC 36th Plenary Session:

For President of ECAC: Ms Ingrid Cherfils (Sweden)

For Vice-President of ECAC: Mr Patrick Gandil (France) Mr Alessio Quaranta (Italy) Ms Silvia Gehrer (Austria)

For membership of the Coordinating Committee: Mr Pekka Henttu (Finland) Mr Dragan Djurovic (Montenegro) Mr Rob Huyser (Netherlands) Mr Mario Nemeth (Slovakia) Mr Raul Medina Caballero (Spain) Mr Dan Micklethwaite (United Kingdom) Mr Bahri Kesici (Turkey)

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Major momentum to increase global public and private “These substantial impacts emphasize the high degree of sector attention on air transport development priorities, priority which should be accorded to aviation develop- particularly in the Americas, has been achieved at the ment in order to fully capture and realize the potential 4th annual ICAO World Aviation Forum in Fortaleza, socio-economic benefits,” The ICAO President remarked. Brazil, culminating in the adoption of a Declaration to “They also explain why we have focused this year’s IWAF Promote Connectivity through the Development and along the theme of Promoting investment for aviation de- Sustainability of Air Transport in the Pan-American velopment.” Region - Vision 2020-2035. President Aliu further noted that governments’ local Through the establishment of a framework commitment and national master plans and strategies are key to this to collaborate in the sustainable growth of air transport, dynamic, and that they would greatly benefit from being this Declaration intends to promote investment for the aligned and structured on the basis of the targets and development of civil aviation throughout the Americas frameworks established in ICAO’s Global Plans for Avi- for a 15 year period. ation Safety (GASP), Air Navigation (GANP), and Avia- tion Security (GASeP). ICAO Council President Dr. Olumuyiwa Benard Aliu set the stage in his opening remarks, underscoring to its “By establishing cooperatively-agreed targets and priori- high-level participants that “Aviation connects States to ties, ICAO’s Global Plans provide us with useful road- regional and global markets, which in turn enhances con- maps which guide our progress in terms of infrastructure and systems modernization, capacity building, aircraft sumer benefits and choices. This fosters job creation and equipage, policy and regulatory adjustments, and many provides added stimulus for local tourism and trade.” other goals which require both national commitments According to the latest ICAO long-term traffic forecasts, and international collaboration.” air traffic volumes for both passengers and freight are Jose Ricardo Pataro Botelho de Queiroz, Director- poised to more than double by 2035. This represents an President, ANAC said that the Latin American region incredible amount of raw economic potential, owing to needs the support of ICAO. the fact that the economic benefits of aviation will also double in magnitude during the same period, support- Juan Carlos Salazar, President of the Latin American ing over 100 million jobs and generating more than six Civil Aviation Commission (LACAC) pointed out that trillion dollars in global GDP. his region is one of the fastest growing regions and this

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ICAO WORLD AVIATION FORUM | 17-19 SEPTEMBER FORTALEZA, BRAZIL growth is expected to continue. Air transport contrib- and liberalization and to show the multiplying effect of utes 5.2 million jobs with a 3.5% per year growth. In- aviation he said that “1 euro invested in aviation has an frastructure issues, high charges, lack of public policies impact of 3 Euro in the overall economy and 1 job in avia- can impact the sustainability of this growth so what is tion has an impact of 3 jobs in other sectors.” needed is “easier access to markets and to eliminate arti- Luis Felipe de Oliveira, Executive Director of Latin ficial restrictions” American and Caribbean Air Transport Association H.E. Mr. Valter Casimiro Silveira, Minister of Trans- (ALTA) said in his turn that aviation is the engine for port, Ports and Civil Aviation of Brazil in his remarks the economy and that growth will come with invest- focused on the way to integrate the objectives of ICAO ment and liberalisation. He pointed to the fact that No Country Left Behind and to eliminate the regulatory airlines need to cover different regulations. Finally he restrictions. himself repeated in his turn that “1 job creation in aviation has an impact of 4 jobs in other businesses”. Capt In Formal Session “Shaping Agenda - Policy Musa Nuhu, Permanent Representative to ICAO from Challenges for Aviation Development” the Nigeria, on behalf of the Minister of State for Aviation first to participate was Yam Keng Baey, Senior Parlia- stressed the importance of making aviation attractive to mentary Secretary, Ministry of Transport and Ministry financial institutions. of Culture, Community and Youth of Singapore who said that aviation has potential for further growth but Formal Session 2 entitled “Investing for Growth critical political questions need to be dealt with is the – Strategies for Aviation Development” air service regime: What will be framework for interna- Angela Gittens, Director General of Airport Council tional aviation as not one framework can work for all. International (ACI) stated that investment in airport He stressed the need to work on people and their skills. infrastructure is critical to the global economy and He concluded by saying “we need to act collectively” global connectivity, and if governments are unable to Lydia Sindisiwe Chikunga, Deputy Minister of Trans- make the required levels of investment, other sources port, South Africa stressed that Aviation is the heart- must be tapped to accommodate traffic growth. beat of social development and economic growth. The panel concluded with Gittens’ call to consider pri- H.E. Carlos Manuel Vila Nova, Minister of Public vatization as a valid option to address shortcomings in Works, Infrastructure, Natural Resources and Envi- existing airport infrastructure and to invest in future ronment of Sao Tome and Principe focused on the im- capacity and service quality improvement as traffic portance of connectivity of air transport from an island is expected to be above 22 billion passengers by 2040, with the rest of the world. growing at an overall rate of 4.5% per year on average.

Scott Streiner, Chair and CEO, Canadian Transporta- Jeff Poole, Director General of Civil Air Navigation tion Agency (CTA) referred to the accessibility for pas- Services Organization (CANSO) said that air traffic sengers with disabilities in order to have equal access and management is a fundamental part of connectivity thus requires international cooperation to establish a homoge- states must enable investment and added that to do this neous regulatory framework. He ended by reframing the they must have clear policies and strategies in local and motto of ICAO to “No Person should be left behind” regional level. Finally he added that consistency is important and that help is needed to secure funding. At High-Level Interactive Discussion 1 “Taking Action - Public Policy Solutions to Aviation Development Im- Michael Comber, Director, Member & External Rela- pediments” Salvatore Sciacchitano, Executive Secretary tions, ICAO Affairs of International Air Transport of the European Civil Aviation Conference (ECAC) pre- Association (IATA) said that aviation and airlines need sented the experience of Europe with the market access to have the right development at the right time.

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ICAO WORLD AVIATION FORUM | 17-19 SEPTEMBER FORTALEZA, BRAZIL ICAO WORLD AVIATION FORUM | 17-19 SEPTEMBER FORTALEZA, BRAZIL At High-Level Interactive Discussion 2 “Matching Inter- erages to aviation and tourism. ests – Showcasing Aviation Investment Opportunities” Dr Kostas Iatrou, Director General of Hermes - Air Capt. Aysha Al Hamili, Permanent Representative to Transport Organisation stressed that in the modern ICAO of United Arab Emirates presented the critical world aviation is an essential part of urban planning. He elements for attracting investment namely having the said that aviation contributes to the local economies so government as a leaders, having flexible policies meeting cities need airports for their connectivity but these must with needs of investment, mitigating pre/post invest- operate in a sustainable and environment friendly way. ment risks providing peaceful and secured environment He concluded by saying that governments facilitate, co- and respecting rule of law. ordinate, cooperate and set the regulations for airport and aviation operations. Mattijs Smith, Head of International Development of UK Civil Aviation Authority stated that aviation needs In her closing remarks to the forum, Secretary General clarity, transparency and certainty. Liu noted that a key takeaway for all present was that the future outlook for aviation remains very positive. In Formal Session 3 entitled “Building Networks – Framework for Integrated Air Trans- Stressing the forecast annual growth rates for passenger port and Urban Planning” Dr. José da Silva and freight traffic through 2035, projected to come in Gonçalves, Minister of Tourism and Transport, of at 4.3% and 3.9% respectively, Dr. Liu emphasized that Cabo Verde stressed that world is changing rapidly and “our top priority must be to ensure that air traffic growth stated Cape Verde has a 10% growth every year. is managed safely, securely and efficiently, with due re- spect for our sector’s concrete environmental commit- Hon. Dato’ Kamarudin Jaffar, Deputy Minister, Min- ments, and in a manner which fully optimizes all related istry of Transport of Malaysia said that from 2004 Ma- social and economic benefits.” laysia has recorded a 5% growth and that aviation contributes 3.5% in the country’s GDP. This growth can be She further stressed that States must work to structur- translated to a comprehensive transport policy. ally formalize their aviation development plans, consistent with relevant international economic and financial Flor Diaz Pulido, Head of Unit for Aviation Policy of frameworks. States also need to develop gap-analysis the European Commission stressed the need to realist to define strategic aviation development targets which that the user is at the heart, “Intermodality is the answer are fully aligned with ICAO’s Global Plans, and achieve at the world we live”. broad-based consensus among all government and in- At the High-Level Interactive Discussion 3 “Reaping dustry partners concerned, and strongly emphasized Benefits – Multimodal and Intermodal Mobility to En- the need to target a dedicated portion of related capacity hance Air Connectivity”, Hon. Monise Tuivaka Laafai, building on investment in ‘soft infrastructure’, in addi- Minister for Communications and Transport, of Tu- tion to technology and innovation. valu said that there are only 3 flights per week to and “National planners must keep one eye very clearly focused from Tuvalu and stressed that the country needs and on the need for adequate numbers of skilled professionals wants connectivity. to be on hand to operate their new facilities and technol- Simon Allotey, Director-General of the Ghana Civil ogy, meaning that human resources planning and devel- Aviation Authority announced that Ghana has estab- opment must therefore be pursued hand-in-hand in order lished a joint aviation tourism committee that gives lev- to optimize returns on all related investments.”

31 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018 interview ANGELA GITTENS Director General

Why, to your opinion, are there restric- movements and relatively low entry bar- the elite and the adventurous into a form tions in aviation sector, whereas they riers, as well as some railway transport of mass transportation. To achieve this, do not exist in other transport sectors peculiarities, such as massive infrastruc- the standards for safety had to be set (such as maritime or railway)? ture requirements, but it is still a relative- very high to offset what is probably a ly young industry. Air transport exhibits some historical natural human anxiety about flying. The features of maritime transport, such as In a little over 100 years it has evolved safety-critical feature of the industry predominantly international nature of from a pioneering mode of transport for resulted in host of technical standards

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and practices whose prime objective is to achieve very high levels of safety in Airports Council International (ACI), the trade as- airline operations. sociation of the world’s airports, was founded in In addition, the industry attracted a 1991 with the objective of fostering cooperation myriad of economic regulations, which among its member airports and other partners in to a large extent are legacy of the past. world aviation, including the International Civil Traffic rights, airline designations and Aviation Organization, the International Air Trans- ANGELA the related issues of ownership and con- port Association and the Civil Air Navigation Services Organ- trol and other fundamental aspects date ization. In representing the best interests of airports during back to the times of the Chicago Con- vention of 1944 signed near the end of key phases of policy development, ACI makes a significant GITTENS World War II. Since then, no strategic re- contribution toward ensuring the global air transport system vision of the industry has happened, and is safe, secure, efficient and environmentally sustainable. regulation has evolved and unequally in As of January 2018, provisional figures show that ACI serves different parts of the world. 641 members operating 1,953 airports in 176 countries. The aviation industry is moving towards globalization, liberalization and private market responsiveness, in both the airline and airport sectors. Regulation may be appropriate to help States adapt to, participate in, and play a flexible and creative role the ownership model that is best fit for These benefits of relaxing foreign invest- in, such an environment but heavy-hand- their aviation vision and practical situa- ment in airlines are potentially a better ed regulation can hamper a State’s ability tion. Types of ownership and participation to attain the benefits of connectivity that allocation of resources (both labour and of private capital vary from airport to air- the aviation sector brings capital) allowing for a better matching of port depending on local circumstances. supply and demand. Many national airlines Each formulation of the ownership model which are on the verge of bankruptcy can should guarantee flexibility to airport op- Do you consider current restrictions stagnate for years and provide sub-opti- erators in developing both the air service regarding ownership and control in the and commercial sides of the business to mal services, waste millions of taxpayers’ aviation industry adequate? meet the State’s objectives and achieve a money and hamper the efficient devel- Since the airline business matured earlier reasonable return on investment. opment of air transport in the country. than the airport industry, the question of If foreign capitals are eager to take advan- In an increasingly dynamic and compet- ownership and control was more relevant tage of such market opportunities, there itive market, a regulatory framework to airlines rather than other major players should be proportionate to the degree of should be no restrictions on them. As Dr. in the aviation ecosystem. The criteria airport market power, only intervening to Barry Humphreys from the Virgin Atlantic of national ownership and control are no correct market failures. The framework said some 15 years ago, “the question is longer current in the context of increasing should serve primarily to facilitate and not whether rules governing ownership globalization of industries and services incentivize commercial agreements be- and control, or cabotage, or aircraft leas- and should be significantly modified. tween airports and airlines in a flexible ing, or anything else, should be reformed, Regulation that limits the possibilities for manner, rather than burdening stake- but rather why on earth one would want non-national ownership can be discrimi- holders with unnecessarily strict rules to keep such restrictions? We are just natory and limit competition. However, if and procedures. shooting ourselves in the foot, indeed in States consider that the modification or both feet”. abolition of national ownership and control could lead to unfair competition, this What could be the benefits of fully relax- The world has seen too many failed yet could be dealt with under safeguards or ing foreign investment in airlines? heavily protected national airlines. Some applicable competition law. Liberalization has the potential to im- States were courageous and wise enough Airports Council International (ACI) does prove connectivity to the economic and to put an end to this – Jamaica, Lithua- not prescribe any specific type of owner- social benefit of the nation and local com- nia, Ghana. Greece, among others, for in- ship model, rather States should choose munities. stance.

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3 trillion for the fourth consecutive year (almost half of these happened in the US), which is expected to even accelerate in 2018. We see consolidation trends in the telecom, pharmaceuticals, but also in infrastructure companies.

Whilst some mergers and acquisition (M&As) worked out successfully and resulted in a truly global companies, a number of M&As failed. The same can be anticipated in the airline industry. However, sheer size is not enough for establishing global airlines. It requires the previously discussed progressive liberalization of market access in order to serve destinations all over the world in the most efficient manner.

If we talk about airline alliances, these emerged largely to bypass the market access restrictions through a number of special vehicles, such as code-sharing and other cooperative arrangements. The three major airline alliances, however, cannot currently qualify as global airlines, as the differences between the individual airlines are apparent.

Would it be sufficient for a few States to remove ownership and control restrictions between themselves to allow their airlines to fly globally? Does it not require ICAO to work on the topic to ensure that relaxation of ownership and control between States are fully recognised and accepted by all States? Even though ICAO and its founding document – the Chicago Convention – have been fundamental in establishing the frameworks of bilateral air service agree- Do you believe in the creation of truly Consolidation means less airlines oper- ments and introduced the notion of air- global airlines? ating in the market and probably serving craft nationality, the real day-to-day negotiations happen outside of ICAO at the We see a lot of consolidation in the air- fewer routes. It also gives airlines more State and regional levels. So, to answer line industry in the recent years. While it purchasing power, more power to dictate your questions, it is not only a matter of might be beneficial for the airlines from the conditions under which they serve airline ownership and control, but also a the financial, economic and efficiency their markets and so on. matter of more liberalized skies. standpoints, it raises some concerns from the competition point of view: it gives car- The airline industry is not the only indus- Under the Air Transport Regulation Panel riers more negotiating power over their try that has experienced consolidation at ICAO, States are working on both top- hubs and more pricing power over the in recent years. Worldwide mergers and ics – on traffic rights between the States consumer. acquisitions activity has exceeded USD and airline ownership and control among

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others. As for the traffic rights, the idea gotiation with airports and suppliers. As current bilateral system be replaced by of drafting a multilateral agreement to ACI EUROPE’s Director General, Olivier Jan- a multilateral system? What are the ad- liberalize market access to encompass kovec, mentioned in his latest editorial vantages and disadvantages of rework- an exchange of not only 3rd and 4th, but piece entitled “When airlines say it best”, ing the aviation regulatory structure? also at least 5th freedom traffic rights, is in the Airport Business Magazine, airline These days, the likelihood of moving from not working out well so far. Even though consolidations should give much food for the bilateral towards the multilateral par- fully in line with ICAO’s long-term vision thought and cause for action. adigm for air service agreements is very toward air services liberalization, the idea In addition, the illustrative ticket search- thin. In some parts of the world, we see a remains more aspirational rather than es made by ICF reveal how air fares on mo- revival of protectionism sentiments and workable. nopoly air routes are consistently higher that includes aviation. A liberal multilateral agreement with the than those on-air routes where there is We also need to keep in mind that air exchange of at least 5th freedom traffic competition between airlines. When it transport services are governed by a rights would help increase air connec- comes to pricing, we have evidence show- specific annex of the General Agreement tivity, enabling wider economic benefits ing that airlines will always exert their on Trade in Services (GATS) under the through increased investment, tourism, pricing power when competition on an air World Trade Organization (WTO). However, trade, and employment. A liberal agree- route is limited, irrespective of the level of the sovereign states have no hesitation ment would also enable the growth of air- airport charges. whatsoever to take protectionist actions ports and airlines. Airlines would be able should there be such need. And we have to tap on new routes to expand their glob- seen air carriers try to fan those flames in al networks, while airports would benefit Some states argue that there is a public order to stymie competition. from increased traffic, and the end-users service role for air carriers; for example, will enjoy more flight options. serving remote communities and pro- Of course, removing ownership and control moting trade and tourism. There is con- restrictions would result in a more vibrant As for airline ownership and control, some cern that that the removal of ownership airline market, but it would be too naïve to progress has been made in developing restrictions would impede this public think that major airlines would start relent- international agreement on liberalization service function. How would you re- lessly chasing small airlines in all parts of of air carrier ownership and control. More spond to this concern? the world, or that foreign investors of all and more states recognize the principal kinds will chase airline shares. place of business as an equal alternative Schemes exist to serve remote commu- to the traditional state or national major- nities and promote tourism even when The move from the bilateral towards the ity ownership and effective national con- such services would not be economically multilateral paradigm might resemble the trol in defining airline nationality. viable. The application of the Essential General Agreement of Tariffs and Trade Service and Tourism Development Route (GATT). The purpose of GATT was to pro- (ESTDR) scheme, which was developed mote international trade by reducing or Removing the ownership and control jointly by ICAO and the United Nations eliminating trade barriers on a reciprocal rules could result in worldwide consoli- World Tourism Organization (WTO) could and mutually advantageous basis. It took dation of the airline industry. Do you be of value. Under this scheme, subsi- the world over 50 years to cut average im- think this would occur? If so, what do dies would be provided to airlines with port tariffs for the major GATT participants you see as the potential benefits and very clear socio-economic objectives and from 22% to 5% from the middle to the pitfalls of this potential consolidation? through a competitive tendering/bidding end of the last century. system having clearly-defined transpar- At the risk of repeating ourselves, lib- ent criteria. This scheme may encourage Not to be sceptical, but the GATT case eralization should always be welcomed better utilization of existing capacity shows the typical pace of such changes whenever there is a potential to improve through incentives and improvement on and unequal economies in both absolute connectivity and increase competition viability and profitability. and relative terms as well as different for the benefit of customers. Meanwhile, geographical positions (which is a big caution is required. Without a doubt, to- factor for aviation) pose an obstacle to day, airlines are able to exercise signifi- Removing the ownership and control reaching such an agreement. In any case, cant dominance over airports thanks to restrictions may require the redrafting the aviation industry is not profoundly consolidation of their operations, and of hundreds of air services agreements. different from other international indus- they have openly admitted it publicly. How would the regulatory structure for tries, and probably GATT and the recent Consequently, they have benefited from the aviation industry change with the advancements in WTO are good sources this in order to increase their power of ne- removal of the restrictions? Would the of inspiration and knowledge, while the

35 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018 interview trade wars in other industries should but the investment needed outpaces also be examined in order to avoid the investment planned. The G20’s them in the skies. Global Infrastructure Outlook reports that, to meet the global traffic demand that ACI In certain parts of the World estimates at 10.7 bil- world, such as Europe, lion passengers by 2022, many key airports have a sample of the airport been privatized. How- investment plans of 50 ever, in most of the countries totals US$355 world, major airports billion in the 2018–2022 remain under the con- period—but their actu- trol of local or national al investment needs are governments. Does your more than US$433 billion. organization have a position on the privatization There is, however, a global of airports? Do you feel need to finance new airport in- that they are better equipped frastructure to meet future de- to operate in a competitive en- mand and if government spending vironment? cannot be relied upon as it has been in the past then there is ample evidence Our previous Policy Brief on airport own- of the value created by private investment ership, economic regulation and financial in airports around the world. Privatization performance noted that, by 2016, 614 is one option for governments. There is no- airports had been privatized. In 2017, the State’s objective and provide the possibil- one size fits-all model given the large vari- airports with private sector involvement ity of a reasonable return on investment. ety of social and economic circumstances, saw their share of global passenger traf- Governments should take the time for a needs and objectives across the globe but fic grow 2 percentage points over the robust project preparation considering positive lessons can be learned from ex- previous year, to 43%. Of the top 100 air- technical, legal, financial, environmental isting privatization processes, especially ports for passenger traffic, the number and social dimensions. where they have been subject to stable, with private sector participation grew to consistent and proportionate economic 51 in 2017, five more than in 2016. Of the While financial pressures on govern- oversight. top 500 airports in 2017, 39% had private ments often make them keen to pri- sector participation — a 1 percentage vatize, regulators should consider the The privatization model to use depends pointing crease over 2016. Private equity critical role airports and aviation play in both on government objectives and the flows to many of the world’s busiest air- connecting any region to the global econ- requirements of the private operator/ ports. These airports are nexuses in the omy. The catalytic effects of improved investor(s) the government hopes to at- air transport value chain and gateways to connectivity on a region’s trade, tourism, tract—On the other hand, governments major destinations and centres of com- foreign investment and locational de- may choose not to privatize their airports merce. Eight of the world’s top 20 and cisions have significant impacts on the and fund airport investment themselves. 15 of the top 50 airports are managed national economy. Governments should ACI does not suggest that airport privatiza- by airport companies and airport groups consider privatizing regional networks tion is a necessary policy choice. The deci- traded on stock exchanges. Clearly, mar- of airports and seek a balance between sion whether to privatize is subject to so- short-term returns and longer-term, wid- ket size matters for private investment. cial, economic, political and other factors er economic benefits. unique to each nation and each airport and That being said, ACI does not prescribe is the sole prerogative of the government any specific type of ownership model. A At the end of the day, one must keep in that owns/operates the airport(s). range of ownership models have proven mind that airports need to invest in infra- to be successful around the world. Each structure to meet future demand. Global To that end, ACI has recently launched a ownership model should guarantee flex- traffic is expected to be more than 22 new Policy Brief on airport privatization ibility to airport operators in developing billion passengers by 2040 and to grow and funding that provides guidance for both the aeronautical and non-aeronau- at an average annual rate of 4.5%. Air- governments and policy makers planning tical sides of the business to achieve the ports welcome future growth prospects to adopt privatization as policy.

36 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018 ΑRTICLES GOLDAIR HANDLING Ground Handling: behind the scenes

Dimitris PapamichaiL Chief Executive Officer (CEO), Goldair Handling

mploying hundreds of thousands most people don’t know that airlines and ry since the opening of ground handling of people across the world, ground airports aren’t usually responsible for the market in Greece, following a long-last Ehandling is an important and sig- ground operations themselves. monopoly. Independent ground handlers nificant industry. Yet people seems em- used to seek authorities for equal treat- barrassingly unaware of who we are and By 2020, more than 70% of all ground ment and a solid regulatory framework what sort of services we actually provide. handling operations will be provided by that will allow a fair competition to stand. We know that ground handlers are the independent ground handling companies Today, airlines enjoy ground services ones working day and night behind the – serving as many as 3 billion passengers competition at 24 Greek airports, have scenes at the airport; the people that en- annually, which is a huge number. Today, seen also their costs reduced through the sure the aircraft takes off. From check-in as the demand for high-quality and inno- years, instead, they experience a much to aircraft and from aircraft to baggage vative airport services grows, indepen- higher level of services towards their delivery, we are with passengers’ every dent ground handling companies provide valuable customers. Apart, thousands of step of the journey. most of the services and continue to ex- new jobs have been offered to, mainly, So, why do people know not that much pand locally, regionally and globally. We young people across the country, indeed about our ever-growing industry? Is it pos- tend to be the largest employers at most during tough times for Greek economy sible that they have never really thought airports. Our expertise increases safety and employment. about who checks-in their bag, transports and efficiency, benefitting passengers it to the aircraft and make sure that it ar- and airlines. For instance, 70% fewer bags But, in a fast changing aviation environ- rives on time at its final destination? What get lost today than 10 years ago. These ment, Greek ground handlers must adopt about air cargo transportation? What are the success stories that ground han- to a new reality, otherwise the narrow about loading/unloading? What about dling sector should be proud of and must margins will turn to losses incredibly eas- cleaning the aircraft? Unfortunately, yes - remember that, no plane can take off ily. With no doubt, Athens International the reality is that most people don’t realize without ground handlers. Airport have played a key role to the suc- how important role ground handlers’ play, cess story of Athens as a city break desti- especially independent ones, because Early next year, it is the 20th anniversa- nation as well as a hub for Aegean Airlines

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and operational base for Ryanair. Fraport must deal with. Significant lack of labor, tually deserved. Alike, ground handlers Greece, will definitely upgrade and pro- investments to fleet modernization, es- must position themselves in accordance mote 14 Greek peripheral airports to the tablishment of new airport fees & rent- with the expectation of airports and air- same direction. Also, Heraklion Airport als, are just a few to mention. lines, ensuring punctuality, reliability (Crete) is about to follow its privatization and fairly wealth competition, but at the path. All above, in addition to the record We all agree that aviation stakeholders same time, handlers’ effort to survive in numbers of Greek tourism, create an op- must benefited from the new era Greece a rapidly changing environment must be timistic environment to airport users, in is tend to enter, but, all members should highly considered and respected by all contrast to the issues ground handlers be quite careful and take what they ac- stakeholders.

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AIR PASSENGER MARKET ANALYSIS June 2018 RPK growth bounces back in June, capping a robust 1st half-year  Industry-wide revenue passenger kilometres increased by 7.8% year-on-year in June, up from 6.0% in April.  The first six months of the year produced growth of 7.0% – a robust, above-trend performance, but down on that of the same period in 2017. This is a pattern we continue to expect to play out over the course of the year overall.  Carriers based in Africa and the Middle East posted the fastest international RPK growth rate this month. Of the main domestic markets, India again led the way with double-digit RPK growth for the 46th consecutive month.

A modest acceleration in RPK growth this month… industry-wide RPKs. Having said that, the pace of Industry-wide revenue passenger kilometres (RPKs) growth over the first half of the year has moderated stepped up to a brisk 7.8% year-on-year pace in June, compared with 1H 2017, where growth was running at In addition, businesses are generallyfrom an even less 6.0% confident in both April andpartly May .attributable to the timingan 8.3% of pace.Ramadan. However, around the global economic outlook than was the case statisticsIn seasonally adjusted (SA) terms,and RPKs as we rebounded noted last month,This 2017 moderation also saw in the demand pace of in growth over the first half last year. Uncertainty around athis possible month, followingglobal trade a shortlived declinethe region in growth adversely last impactedis in line by witha number our expectation of policy that RPK growth, while war, geopolitical tensions in variousmonth. parts SA RPKs of the rose world by a sizeablemeasures 1.4% in June including - the the remainingban on portablerobust, will electronic nonetheless slow moderately in and region-specific issues suchstrongest as Brexit monthly are weighing rise seen in almostdevices two years and travel– after restrictions, 2018 comparedso part of with the theexpected rate recorded last year. on business sentiment. the 0.5% fall in May. (See Chart improved1.) As we performanceindicated overLess coming stimulus months from willlower reflect airfares a key factor last month, the monthly data canthose be volatile developments and the of a year ago. This uncertainty is captured in the global composite The moderation in demand momentum reflects the JUNErebound 2018: on this occasion Air is unsurprising; Passenger taken Market Analysis gers’ Index impact of a number of factors. First and foremost, the Purchasing Mana (PMI)together, which the last has two been months pointIn to aAfrica, monthly the growth upward SA demand trend remains increase in airline input costs – most notably fuel shown to be reliable indicator ratefor thatRPK is broadlygrowth .in (See line wit h the longreasonably-run average strong,. perhaps supported in part by the RPK growth bounces back in June, cappingprices which a robust have risen 1stby arou half-yearnd 60% over the past Chart 2, previous page.) The more mixed PMI continent’s recent commitment to improving air …although growth has moderated in 2018 so far year and are up ~125% from their low point in early- outcomes compared with last year are consistent with connectivity. Higher oil and commodity prices have Looking at the first half of the year, RPKs are growing 2016. The higher input costs are reducing the boost to a modest slowdown in annual industry-wide RPK supported the economic backdrop in a number of at a solid pace of 7.0%, consistent with our view that demand from lower airfares, a key driver of the strong growth over the coming months. countries, including Nigeria. 2018 will be another year of above-trend growth for demand growth observed in recent years. The moderation in economic activity has been most …and Asia Pacific not far behind – – visible up to now in the Eurozone,Chart 1but Air has passenger recently volumes Chart 2 Air passenger volume growth and global International RPKs for the compositeAsia Pacific business airlines confidence grew by measure spread to other large developedIndustry economies RPKs (billion per month). (See 9.5% year-on-year growth Diffusion in June.indices Passenger traffic % year-on-year Chart 3.) 750 65 16% has continued to trend upwards stronglyGrowth in SA in industry terms RPKs (RHS) In addition, businesses are generally700 less confident partly attributable to the timing60 of Ramadan. However, 12% Chart 3 – Economic conditions (monthly data from supported by a combination of robust regional around the global economic outlook than was the case and as we noted last month, 2017 also saw demand in composite PMIs, selected regions650 and countries) Actual economic growth and ongoing55 increases in the 8% last year. Uncertainty around a possible global trade thenumber region adverselyof options impactedfor travelers by .a The number latter of translates policy 600 50 4% war, geopolitical tensions in various parts of the world measuresinto time inc savingsluding thefor passengersban on portable and has electronic a similarGlobal composite PMI 550 index (adv. 2 months, LHS) and region-specific issues such as Brexit are weighing Seasonallydevicesstimulatory and travel impact restrictions, on demand45 so as part reductions of the expected in fares . back from0% a robust 7.9% pace last month. In terms of Growth eases modestly in the domestic US market on business sentiment. adjustedimproved performance over coming months will reflect 500 40 the trend-4% in air transport demand, there are some – the world’s largest – A solid performance in Europe & North America… The domestic US market gave those developments of a year ago. This uncertainty is captured in the450 global composite tentative indications of a slowdown. Although we up its modest gain from last month, with growth RPK growth in Europe 35and North America was -8% gers’ Index wouldn’t read too much into that at this stage, given Purchasing Mana (PMI)400 which has been In Africa, the upward SA demand trend remains returning to a 5.3% year-on-year pace, from 5.5% last broadly similar, at around 306% year-on-year. Both are -12% 2014 2015 2016 2017 2018 the typical volatility in the data. We are keenly this month’s result, the bigger shown to be reliable indicator for RPK growth. (See reasonably strong, perhaps supported2007 2008 2009 in2010 part2011 by2012 the2013 2014 2015 2016 2017 2018 month. Notwithstanding Sources: IATA Economics, IATA Monthly Statistics being supported by a generally healthy economic Sources: IATA Economics, IATA Monthly Statistics, Markit watching developments in two of the region’s Chart 2, previous page.) The more mixed PMI continent’s recent commitment to improving air key picture is that US domestic passenger traffic is backdrop – although the picture is somewhat more – – outcomes compared with last yearAir apassengerre consistent market with overviewconnectivity. - June 2018 Higher oil and commodity prices have economies Brazil and Argentina which could have currently trending upwards strongly and continues to mixed in that regard in Europe. Overall the demand a bearing on the region’s overall traffic performance in a modest slowdown in annual industry-wide WorldRPK supportedJune 2018 the(% year-on-year) economic backdrop in a number% year-to-dateof be supported by signs of increasing momentum in the trend remains sound for both regions. That said, the growth over the coming months. share 1 RPKcountries,1 ASK including1 PLF (%-pt) Nigeria.2 PLF (level) 3 RPK1 ASK1 PLF (%-pt)2 PLFcoming (level)3 months. US economy. possibility of further ATC strikes in Europe over the TOTAL MARKET 100.0% 7.8% 6.5% 1.0% 82.8% 7.0% 6.1% 0.7% 81.3% The moderation in economic activity has been most …andsummer Asia peak Pacific period not mayfar behind impact growth outcomes for Moderate acceleration in domestic RPK growth… …and in Russia International 63.8% 7.7% 5.9% 1.4% 81.9% 6.7% 5.7% 0.8% 80.4% Passenger load factor rises vs a year ago Annual industry-wide domestic RPK growth also visible up to now in the Eurozone, Domestic but has recently36.2% 7.9%Internationalthat region7.5% RPKs over comingfor0.3% the Asiamonths,84.5% Pacific while airlines 7.5%the prospect grew6.9% by of 0.5% 82.9% Year-on-year growth in domestic Russia RPKs also spread to other large developed economies. (See further escalation in the trade dispute could weigh accelerated in June, rising from 6.7% year-on-year in Year-on-year growth in industry1 -wide available seat2 9.5% year-on-year growth3 in June. Passenger traffic eased somewhat in June, to an even 6.0% pace, % of industry RPKs in 2017 Year-on-year change in load factor Load factor level Chartkilometres 3.) (ASKs) again lagged behind that of RPKs hasupon continued demand to for trend the upwardsNorth America strongly carriers. in SA terms May to a 7.9% pace in June. (See Chart 5.) down from their six-month high of 8.6% in May. Air Passenger Market Analysis – May 2018 1 this month (6.5% year-on-year vs 7.8%). As a result, supported by a combination of robust regional Chart 3 – Economic conditions (monthly data from Chart 4 – International passenger traffic growth by Chart 5 – Domestic RPK growth by market Looking through the monthly volatility shows a strong the passenger load factor rose by an even economicairline region growth of registrationand ongoing increases in the composite PMIs, selected regions and countries) Jun 2018 May 2018 upward trend in demand for the domestic Russia 1.0 percentage point relative to June 2017, taking it to number of options for travelersJun 2018 .May The 2018 latter translates Industry 7.9% 6.7% market. Part of this might be a reflection of the 7.7% 82.8%. In SA terms, demand and capacity are broadly into timeIndustry savings for passengers and has a similar 17.6% 5.6% Domestic India 15.8% contribution from the recent World Cup football event, rising at similar rates at present. stimulatory impact on demand as reductions in fares11.0%. 15.3% Middle East 0.0% Domestic China 11.9% but more broadly is likely to highlight the positive Internat’l RPK growth accelerates again in June… A solid performance in Europe & North America… 6.0% impact that higher world oil prices are having on the 10.9% Domestic Russia 8.6% Africa 2.1% Year-on-year growth in industry-wide international 5.3% health of the Russian economy, incomes and jobs. RPK growth in Europe and North America9.5% was Domestic USA 5.5% Asia Pacific 7.7% RPKs accelerated further in June, to a brisk 7.7%, up 5.3% broadly similar, at around 6% year-on-year. Both are Domestic Brazil Domestic Brazil growth recovers, but impact of 6.1% 3.8% from 5.6% in May. (See Chart 4.) Europe 6.3% being supported by a generally healthy economic 3.7% strikes persists Domestic Japan 1.7% backN.drop America – although the picture5.9% is somewhat more Airlines based in the Middle East and Africa topped 5.0% 1.8% Dom. Australia 3.1% In June, RPKs for the domestic Brazil market mixed in that regard in Europe.5.6% Overall the demand the international RPK growth chart this month, with L. America 7.9% recorded year-on-year growth of 5.3%, up from 3.8% trend remains sound for both regions. That said, the 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% double-digit growth of 11.0% and 10.9% year-on-year, Domestic revenue passenger kilometres (% year-on-year) in May. We noted last month the impact of the general 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% Sources: IATA Economics, IATA Monthly Statistics possibility of furtherInternational ATC revenue strik passengeres inkilometres Europe (% year over-on-year) the respectively. strikes in the country, which adversely impacted summerSources: IATA peak Economics, period IATA Monthly may Statistics impact growth outcomes for …again driven by India and China… economic activity and contributed to the first year-on- Passenger…with Middle load factorEast & rises Africa vs leading a year agothe way… that region over coming months, while the prospect of Air passenger market detail - June…but 2018 some signs of a slowing in Latin America As was the case with last month’s short-lived RPK year fall in the domestic passenger load factor in YearFor-on the-year Middle growth East in industryairlines,-wide this availablemonth’s seatstrong further escalation in the trade dispute could weigh World InternationalJune 2018 (%RPKs year-on-year) flown by carriers based in Latin% year-to-date growth slowdown, the performance of the domestic 10 months. That impact has not been fully unwound in kilometresoutturn follows(ASKs) a againvery weaklagged resu behindlt last thatmonth, of RPKswhich is 1 upon demand1 for1 the North2 America carriers.3 1 1 2 3 share AmericaRPK roseASK byPLF 5.6% (%-pt) yearPLF- on(level)-year in June,RPK slippingASK PLF (%-pt) marketsPLF (level) of both China and India were key contributors June, with the PLF still 2.0 percentage points lower this month (6.5% year-on-year vs 7.8%). As a result, TOTAL MARKET 100.0% Chart7.8% 4 – International6.5% 1.0%passenger82.8% traffic growth7.0% by 6.1% 0.7%to the 81.3%lift in the overall aggregate outcome. than that of a year ago, even with the recovery the passenger load factor rose Africa by an even 2.2% airline6.3% region of1.8% registration2.9% 68.0% 2.7% 1.1% 1.1% 69.7% observed in RPK growth on this occasion. The India domestic market continues to lead the way, 1.0Air percentage Passenger point Market relative Analysis to June – June Asia2017, Pacific2018 taking it to 33.7% 11.2% 9.8% Jun1.0% 2018 May 201881.7% 9.7% 8.8%2 0.7% 81.5% th Japan and Australia post only modest growth 82.8%. In SA terms, demand and capacity Europe are broadly 26.6% 5.8% 4.5% 1.0% 86.4%7.7% 6.3% 5.0% 1.1%with year83.3%-on-year growth of 17.6% in June; its 46 Industry 5.6% rising at similar rates at present. Latin America 5.2% 5.3% 6.5% -1.0% 80.3% 6.7% 6.2% 0.3%consecutive81.4% month of double-digit growth, fast closing Year-on-year growth in domestic Japan RPKs lifted 11.0% Middle East Middle East 9.5% 10.3% 0.0% 7.5% 1.8% 71.1% 4.7% 4.4% 0.2%in on 73.7%the four year milestone which would be a somewhat on this occasion, to 3.7% in June, from ’ again in June… Internat l RPK growth accelerates 10.9% North America 23.0% Africa5.5% 4.3%2.1% 0.9% 87.2% 5.1% 4.6% 0.4%substantial83.5% achievement. 1.8% last month. Against some tentative indications of Year-on-year growth in industry-wide international 9.5% a softening economic backdrop, the solid, if Asia Pacific 7.7% China’s growth performance this month wasn’t far RPKs accelerated further in June, to Internationala brisk 7.7%, up 63.8% 7.7% 5.9% 1.4% 81.9% 6.7% 5.7% 0.8% 80.4% unspectacular, upwards trend in SA air passenger 6.1% behind that of India, with domestic RPKs up 15.3% on from 5.6% in May. (See Chart 4.) Africa 1.9% Europe10.9% 5.5% 3.3% 6.3%68.0% 6.8% 4.5% 1.5% 69.4% demand currently remains in place. their level of a year ago. Asia Pacific 18.5% N. America9.5% 7.4% 1.5% 5.9% 80.6% 8.3% 7.5% 0.7% 80.2% Airlines based in the Middle East and Africa topped 5.0% Australia remains the slowest growing of the domestic Europe 23.7% 6.1% 4.8% 1.1% 86.8% 6.4% 5.1% 1.0%In both83.9% cases, the very strong annual growth the international RPK growth chart this month, with L. America 5.6% Latin America 2.8% 5.6% 6.5% -0.7% 81.4%7.9% 8.2% 8.0% 0.2% 81.9% markets that we regularly monitor. RPKs increased by double-digit growth of 11.0% and 10.9% year-on-year, outcomes continue to be supported by sizeable Middle East 9.1% 11.0%0% 1% 8.0%2% 3% 4% 1.9%5% 6% 7%71.0%8% 9% 10%4.8%11% 12% 4.6% 0.1% 73.7% a modest 1.8% year-on-year in June, easing from the respectively. International revenue passenger kilometres (% year-on-year) increases in the number of airport connections within North America 7.8% 5.9% 3.6% 1.9% 86.7% 5.4% 3.9% 1.2% 82.0% 3.1% pace recorded in May. Sources: IATA Economics, IATA Monthly Statistics the respective countries. And although such growth …with Middle East & Africa leading the way… rates cannot continue indefinitely, at this stage, there IATA Economics …but some signs of a slowing in Latin America For the Middle East airlines, this Domesticmonth’s strong 36.2% 7.9% 7.5% 0.3% 84.5% 7.5% 6.9% 0.5%are few82.9% signs of any significant change in the growth [email protected] 4 0.9% 1.8% 1.2% 0.5% 78.0% 3.4% 1.5% 1.4% 78.3% outturn follows a very weak result last Dom. month, Australia which is International RPKs flown by carriers based in Latin performance anytime soon. 9 August 2018 Domestic Brazil4 1.2% America5.3% rose 8.0%by 5.6% -2.0%year-on-year78.2% in June,4.8% slipping 4.8% 0.0% 80.3% Dom. China P.R.4 9.1% 15.3% 16.3% -0.7% 84.6% 13.1% 13.4% -0.2% 84.4% Domestic India4 1.4% 17.6% 17.0% 0.5% 85.8% 21.1% 17.7% 2.5% 88.3% Air Passenger Market Analysis – June Domestic 2018 Japan4 1.1% 3.7% 1.3% 1.6% 70.9% 3.2% 2 1.5% 1.1% 70.0% Dom. Russian Fed.4 1.4% 6.0% 5.4% 0.5% 84.3% 6.9% 4.3% 1.9% 79.4% Domestic US4 14.5% 5.3% 4.8% 0.4% 87.9% 5.0% 5.1% 0.0% 84.4%

1% of industry RPKs in 2017 2Year-on-year change in load factor 3Load factor level 4 Note: the seven domestic passenger markets for w hich broken-dow n data are available account for 30% of global total RPKs and Airapproximately Passenger Market Analysis – June 2018 3 82% of total domestic RPKs

Note : the total industry and regional grow th rates are based on a constant sample of airlines combining reported data and estimates for missing observations. Airline traffic is allocated according to the region in w hich the carrier is registered; it should not be considered as regional traffic.

Further details about the statistics in this publication can be found here.

39 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018

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Air Passenger Market Analysis – June 2018 4

AIR PASSENGER MARKET ANALYSIS July 2018 A solid start to the peak season, alongside a record July load factor  Annual growth in industry-wide revenue passenger kilometres made a solid start to the peak demand season in July (6.2%), underlining our view that 2018 will be another year of above-trend growth for passenger volumes. statistics  The industry-wide load factor posted a record high for the month of July (85.2%), led by European airlines (89.0%).  Airlines based in Asia Pacific posted the fastest annual international RPK growth rate for the first time in three months. Meanwhile, the domestic India growth rate remained in double-digit territory for the 47th month in a row. While economic conditions remain reasonably solid, International RPK growth slows in all regions RPK growth makes a solid start to the peak season Key demand drivers have become less supportive heightened uncertainty about trade restrictions, Year-on-year growth in industry-wide international Year-on-year growth in ingeopoliticaldustry-wide tensionsrevenue in partsThis of viewthe worldreflects and a number region of- factorsRPKs, particularly fell to the 5.3% in July, with annual RPK growth passenger kilometres (RPKs) slowed to 6.2% in July, increase in airline input costs, which stems in large specific issues such as Brexit, have all played a role in slowing in all regions relative to June. (See Chart 5.) down from 8.1% in June. the moderation in business sentimentpart from higher. fuel prices. Upward pressure on input costs is translating into a reduced boost to demand– Nonetheless, the July outcome marked a solid start to Chart 5 International passenger traffic growth by All told, the global compositefrom Purchasinglower airfares, Man whichagers’ has been a airlinekey driver region of the of registration the peak passenger demand season and underlines Index (PMI) is consistent strongwith annualRPK growth industry rates- wideseen in recent years. Jul 2018 Jun 2018 our view that 2018 will be another year of above-trend RPK growth remaining around its current solid rate 5.3% growth for industry-wide RPKs. Passenger volumes As we pointed out in a recent note, declinesIndustry in the 8.2%

have increased by 6.9% over theover first the seven comi monthsng months of . (Seevalue Chart of a3.) number of currencies relative to the US 7.5% Asia Pacific – 9.6% the year compared to the same However,period of 2017 having in fallenline fromdollar its elevated will exacerbate level earlier the impact in of rising US dollar- Africa 6.8% with the average pace seen over the past five years. denominated fuel costs for airlines in some key 11.0% the year, the indicator suggests that we are unlikely to JULY 2018: Air Passenger Market Analysis 4.8% emerging market economies. That said, and as we have notedsee before, any thesignificant pace of or sustained acceleration in Middle East 11.2% growth this year to date has been slower than that 4.4% industry-wide RPK growth inMeanwhile, the near term. business surveys also indicateEurope that the Solid growth in RPKs in April, with another record high load factor 7.1% seen in the same period of 2017, during which RPKs underlying economic backdrop has become more N. America 4.1% grew by 8.1% in year-on-year terms.Chart This 3 –supports Air passenger our volumemixed too growth – particularly and global when compared to the best of 6.0% view that RPK growth, while remainingcomposite robust, business will slow confidence the measuresynchronized and broad-based pick-up in 3.8% L. America 5.6% moderately in calendar-year 2018Diffusion relativeindices to last year. economic activity seen% year- onat-year end-2017. (See Chart 2.) 65 16% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% Growth in industry RPKs (RHS) International revenue passenger kilometres (% year-on-year) – 60 – 12% Sources: IATA Economics, IATA Monthly Statistics Chart 1 Air passenger volumes Chart 2 Economic conditions (monthly data from composite PMIs, selected regions and countries) 55 8% Industry RPKs (billion per month) Asia Pacific carriers post the fastest growth… 800 50 4% Airlines based in Asia Pacific topped the growth chart Global composite PMI 750 for the first time in three months. While year-on-year 45 index (adv. 2 months, LHS) 0% 700 growth fell to 7.5% in July, from 9.6% in June, the Actual 650 40 -4% bigger picture is that the upward trend in passenger

600 35 -8% traffic remains strong, supported by a combination of Divergence in Europe and N.America trends.… behind that of India, with domestic RPKs up 14.8% While economic conditions remain550 reasonably solid, International RPK growth slows in all regions robust regional economic growth and ongoing 30 -12% Europeheightened and Northuncertainty America aboutposted tradesimilar restrictionsyear-on- , comparedSeasonally to July 2017. increases in the number of options for travelers. 500 adjustedYear2007-on2008-year2009 growth2010 2011 in2012 industry2013 2014-wide2015 2016 international2017 2018 yeargeopolitical RPK growth tensions rates in partsin July of the(4.4% world and and 4.1% region - DemandRPKsSources: fell IATAcontinues Economics,to 5.3% IATA toMonthly inbe Statistics,July supported ,Markit with a innnual both RPK cases growth by 450 …followed by Middle Eastern and African airlines respectively)specific issues, although such as theBrexit SA, have RPK all trendsplayed ahave role in structuralslowing inchanges, all regions including relative ongoingto June. (Seerises Chartin living 5.) 400 Load factor rises to a fresh July-high, above 85% Year-on-year growth in international RPKs flown by divertheged moderation somewhat in businessin recent months.sentiment . standards, as well as sizeable increases in the 2014 2015 2016 ChartIndustry2017 5 –- wideInternational2018 available passenger seat kilometres traffic growth(ASKs) by grew airlines based in the Middle East more than halved In Europe’s case, passenger volumesSources: IATAhave Economics, IATA Monthlygers’ Statistics number of airport connections within the respective All told, the global composite Purchasing Mannowa airlineby 5.5%region ofyear registration-on-year in July. As a result, the between July and June (to 4.8%, from 11.2%), Air passenger market overviewcountries. - July The 2018 latter translates into time savings for trackedIndex sideways(PMI) is forconsistent the past withthree annual months, industry which- wideis passenger load factorJul 2018 roseJun by 2018 0.6 percentage points although this mainly reflected volatility in the data a World passengersJuly 2018 and (% hasyear-on-year) a similar stimulatory impact on % year-to-date consistentRPK growth with mixedremaining developments around its on current the economic solid rate Industry 5.3% relative to July 2017, to a record-high8.2% for the month year ago than any major development at present. share 1 demandRPK1 as reductionsASK1 PLF (%-pt) in fares.2 PLF (level)3 RPK1 ASK1 PLF (%-pt)2 PLF (level)3 frontover as the well comi asng possible months. (Seedisruption Chart related3.) to ATC 7.5% Asia(85.2%). Pacific All regions except the Middle East and Latin strikes in the region. By contrast, strongTOTAL momentum MARKET 100.0%in 6.2% 5.5% 0.6% 85.2% 9.6%6.9% 6.1% 0.7%The region81.9% has been adversely impacted by a number However, having fallen from its elevated level earlier in …asAmerica Russia Whilealsoregistered postseconomic doublerecord conditions-digit July annual remainpassenger growth reasonably load solid, International RPK growth slows in all regions International 63.8% 5.3%Africa 4.7% 0.5% 85.0%6.8% 6.6% 5.6% 0.8%of policy81.2% measures in recent years, including the ban the US economy has helped to underpin a pick-up in heightened uncertainty about trade11.0% restrictions, the year, the indicator suggests that Domestic we are unlikely36.2% to Meanwhile,7.8%factors. y(See6.9%ear-on Chart-year0.8% 4.)growth In seasonally 85.6%in domestic adjusted7.6% Russia (SA)6.9% 0.5% Year83.3%-on-year growth in industry-wide international international passenger demand for North American 4.8% on portable electronic devices and travel restrictions. see any significant or sustained acceleration in RPKsMiddleterms, accelerated East demandgeopolitical into is once double tensions again-digit intrending territoryparts ofupwards in the July, world11.2% toslightly and region- RPKs fell to 5.3% in July, with annual RPK growth airlines in recent months. 1% of industry RPKs in 2017 2Year-on-year change in load factor 3Load factor level specific issues4.4% such as Brexit, have all played a role inHowever, there are tentative signs of a pick-up in the industry-wide RPK growth in the near term. a 13faster-Europemonth than high capacity. (10.8%). The upward7.1% trend in SA slowing in all regions relative to June. (See Chart 5.) Air Passenger Market Analysis – July 2018the moderation in business sentiment. 1 …amid a recent weakening in Latin America demand remains very strong,4.1% with higher world oil upward trend in passenger volumes, which we will Chart 3 – Air passenger volume growth and global N.Chart America 4 – Passenger load factors6.0% by region Chart 5 – International passenger traffic growth by prices helpingAll totold, support the global economic composite activity Purchasing in the Managers’continue to monitor closely in the coming months. Havingcomposite topped business the growth confidence chart just measure two months ago, 3.8% Jul 2018 Jul 2017 airline region of registration L. America All-time Jul low* All-time Jul high* % year-on-year Russian economy, as well as incomes5.6% and jobs. LatinDiffusion Americanindices carriers posted the slowest IndustryIndex (PMI) is consistent with annual85.2% industry84.7% -wideVolatility a year ago was alsoJul a2018 key Junfactor 2018 behind the 65 16% 0% RPK1% 2% growth3% 4% remaining5% 6% 7% around8% 9% 10% its11% current12% solid rate 5.3% international RPK growth rate in July, at 3.8% year- Strong momentum in the domestic US market slowdown Industryin year-on-year international RPK8.2% growth Growth in industry RPKs (RHS) EuropeInternational revenue passenger kilometres (% year-on-year)89.0% 88.5% 60 12% Sources: IATA Economics, IATA Monthly Statistics on-year. Recent signs of softness in demand have over the coming months. (See Chart 3.) for African airlines in July (to 6.8%, from7.5% 11.0% in The largest domestic market in the world – the US – Asia Pacific 9.6% come alongside disruption from the general strikes in N. America 87.5% 86.6% 55 8% However, having fallen from its elevated level earlier inJune ). Indeed, the upward SA demand trend remains sawAsia annual Pacific RPK carriers growth post increase the fastestto a five growth…-month high Africa 6.8% Brazil. 11.0% of 5.6%L. Americain theJuly year – ,some the indicator way above suggests the thatfive -weyear84.2% are 84.6% unlikely tostrong . 50 4% Airlines based in Asia Pacific topped the growth chart Middle East 4.8% Global composite PMI 11.2% This has been amplified by comparison with the averageAsia (4.2%). Pacificsee Passengerany significant traffic isor currently sustained trending 82.9%acceleration 81.8% in index (adv. 2 months, LHS) for the first time in three months. While year-on-year Higher oil and commodity prices have supported the 45 0% 4.4% strong period of demand a year ago, prior to last upwards stronglyindustry, supported-wide RPK by growthincreasing in the momentum near term. economic Europebackdrop in a number o7.1%f countries, growthMiddle fell East to 7.5% in July, from 9.6% in June,80.1% the81.3% year’s40 Hurricane season. Given the disruption caused-4% in the US economy. In SA terms, domestic RPKs 4.1% bigger pictureChart is 3that – Airthe passengerupward trend volume in passenger growth and global includingN. AmericaNigeria, although business6.0% confidence by the latter, the year-on-year comparison is likely to have risenAfrica atcomposite an annualized business rate ofconfidence around 7.5% measure since75.9% 73.9% remains fragile in South Africa. (Again, see Chart 2.) 35 -8% traffic remains strong, supported by a combination of L. America 3.8% become more favorable over the coming months. the start of 2018. % year-on-year 5.6% robust regionalDiffusion60% 65%indiceseconomic70% 75% growth80% 85%and 90%ongoing 65 16% 30 -12% Passenger load factors (% of available seat kms, actual) 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% Sources: IATA Economics, IATA Monthly Statistics Slight2007 slowdown2008 2009 2010 in2011 domestic2012 2013 2014RPK2015 growth2016 2017 2018 Recoveryincreases in in domestic the number Brazil ofGrowth options RPKs in industry forhas travelers.RPKs resumed (RHS)*Data from 1990 onwards International revenue passenger kilometres (% year-on-year) Sources: IATA Economics, IATA Monthly Statistics, Markit 60 12% Sources: IATA Economics, IATA Monthly Statistics Annual growth in domestic RPKs slowed slightly in Domestic…followed RPKs by inMiddle Brazil East postedern andtheir African fastest airlinesannual 55 8% carriers post the fastest growth… July,Load to 7.8%factor from rises 8.0 to% a in fresh June. July (See-high, Chart above 5.) 85% growthYear- onin- yearJuly growthsince Aprilin international 2014 (8.4%). RPKs After flown the by Asia Pacific disruptionAir passenger owing to market the general detail - Julystrikes 2018 in the country ChartIndustry 6 – -Domewide sticavailable RPK growthseat ki blometresy market (ASKs) grew airlinesAir Passenger based50 in Market the Middle Analysis East – Julymore 2018 than halved 4% Airlines based in Asia Pacific topped the growth 2 chart in recent months, the Worldrecovery in domesticGlobalJuly 2018 composite (%RPKs year-on-year)PMI % year-to-date by 5.5% year-on-yearJul 2018 in JunJuly. 2018 As a result, the between July and June1 (to 4.8%,1index from (adv. 2 months,111.2%) LHS) , 2 3 for the1 first time1 in three2 months. While3 year-on-year 45 share RPK ASK PLF (%-pt) PLF0% (level) RPK ASK PLF (%-pt) PLF (level) 7.8% looks to have resumed. In SA terms, RPKs are now passengerIndustry load factor rose8.0% by 0.6 percentage points althoughTOTAL MARKET this mainly 100.0%reflected volatility6.2% in the5.5% data a0.6% 85.2% growth6.9% fell to6.1% 7.5% in0.7% July, from81.9% 9.6% in June, the back within 1%40 of the peak reached in late-2014. -4% 18.3% year ago than any major development at present. bigger picture is that the upward trend in passenger Domesticrelative India to July 2017, to a record-high for16.1% the month Africa 2.2% 3.5% 0.8% 2.0% 75.9% 2.8% 1.0% 1.2% 70.7%

(85.2%). All regions except the Middle 14.8%East and Latin Australia Asia Pacific and35 Japan post33.7% just modest9.4% growth7.9% 1.1% -8%82.9% traffic9.7% remains8.7% strong, 0.8%supported81.7% by a combination of Domestic China 16.0% The region has been adversely impacted by a number robust regional economic growth and ongoing America registered record July10.8% passenger load Europe 26.6% 4.6% 4.0% 0.5% 89.0% 6.3% 5.0% 1.0% 84.3% Domestic Russia 6.3% Domesticof policy RPKs measures30 flown inin recentAustralia years, grew including by 1.5% theyear ban- -12% factors. (See Chart 4.) In seasonally adjusted (SA) Latin America2007 2008 20095.2%2010 2011 20125.3%2013 2014 20155.9%2016 2017-0.5%2018 84.2% increases6.4% in 6.1%the number0.2% of options81.9% for travelers. 8.4% onon-year portable in July, electronic up from devices0.9% in and June travel and restrictionsin line with. Domestic Brazil 5.0% terms, demand is once again trending upwards slightly Middle EastSources: IATA Economics,9.5% IATA Monthly Statistics,4.5% Markit 6.1% -1.2% 80.1% 4.7% 4.7% 0.0% 74.7% 5.6% the five-year average pace. …followed by Middle Eastern and African airlines fasterDomestic thanUSA capacity. 5.3% However, North America there are tentative23.0% signs5.0% of a pick4.0%-up in the0.9% 87.5% 5.1% 4.5% 0.5% 84.1% Load factor rises to a fresh July-high, above 85% Year-on-year growth in international RPKs flown by Dom. Australia 1.5% Yearupward-on-year trend growth in passenger in domestic volumes, Japan RPKswhich fellwe towill Chart 4 – Passenger0.9% load factors by region 1.0% 1.0% in July.I ndustryVolatility-wide during available the typhoon seat kiseasonlometres last (ASKs) grew airlines based in the Middle East more than halved Domestic Japan continue International to monitor closely63.8% in the coming5.3% months.4.7% 0.5% 85.0% 6.6% 5.6% 0.8% 81.2% 3.7% Jul 2018 Jul 2017 between July and June (to 4.8%, from 11.2%), All-time Jul low* All-time Jul high* year is Africa likely byto continue5.5% year 1.9%to affect-on-year year6.8% -inon -July.year3.9% growthAs a result,2.1% the76.0% 6.8% 4.3% 1.6% 70.5% Industry0% 2% 4% 6% 8% 10% 12% 14% 16% 18%85.2%20%84.7% Volatility a year ago was also a key factor behind the Domestic revenue passenger kilometres (% year-on-year) rates Asiain Pacificthe passengercoming months. 18.5%load factor Nonetheless, rose7.5% by 0.6 6.0%the percentage key 1.1% point82.1%s although8.2% this7.2% mainly refl0.8%ected volatility80.5% in the data a Sources: IATA Economics, IATA Monthly Statistics slowdown in year-on-year international RPK growth Europe 89.0% 88.5% point Europeis that relativeSA air topassenger Ju23.7%ly 2017, demand to4.4% a record is currently3.9%-high for 0.5%the month89.1% year6.3% ago than5.1% any major1.0% development84.8% at present. for African airlines in July (to 6.8%, from 11.0% in trending upwards(85.2%). at a All2-3% 2.8%regions annualized except rate. the Middle East and Latin IndiaN. and America China top the growth chart once again…87.5% 86.6% Latin America 3.8% 4.6% -0.6% 84.2% The7.5% region has7.4% been adversely0.1% 82.3%impacted by a number June). Indeed,America the upwardregistered SA demandrecord trendJuly remainspassenger load The India domestic market topped the growth chart for Middle East 9.1% 4.8% 6.5% -1.3% 80.3% of 4.8%policy measures4.9% in-0.1% recent years,74.7% including the ban L. America 84.2% 84.6% strong. factors. (See Chart 4.) In seasonally adjusted (SA) the 12th time in 13 months in July, and posted its 47th North America 7.8% 4.1%IATA Economics2.8% 1.1% 87.2% on5.2% portable electronic3.7% devices1.2% and82.9% travel restrictions. Asia Pacific 82.9% 81.8% Higher oil terms,and commodity demand is prices once againhave trendingsupported upwards the slightly consecutive month of double-digit growth (18.3%). [email protected] th economic Domestic fasterbackdrop than 36.2%capacity.in a number 7.8%30 Augustof 6.9%countries, 2018 0.8% 85.6% However,7.6% there6.9% are tentative0.5% signs83.3% of a pick-up in the Meanwhile,Middle East China’s growth performance wasn’t80.1% 81.3%far 4 upward trend in passenger volumes, which we will including Dom. Australia ChartNigeria, 4 – Passengeralthough0.9% businessload1.5% factors confidence0.9% by region 0.4% 81.4% 2.9% 1.3% 1.3% 78.8% Africa 75.9% 73.9% 4 1.2% continue to monitor closely in the coming months. remain Domestics fragile Brazil in South Africa. (Again,8.4% see Chart9.1% 2.) Jul-0.6% 2018 Jul 2017 83.7% 5.3% 5.4% -0.1% 80.8% All-time Jul low* All-time Jul high* Dom. China P.R.4 9.1% 14.8% 14.3% 0.4% 84.6% 13.5% 13.7% -0.1% 84.5% 60% 65% 70% 75% 80% 85% 90% Industry 85.2% 84.7% Volatility a year ago was also a key factor behind the Passenger load factors (% of available seat kms, actual) 4 1.4% 18.3% 12.2% 4.4% 86.9% 20.5% 16.7% 2.8% 88.1% Sources: IATA Economics, IATA Monthly Statistics *Data from 1990 onwards Domestic India slowdown in year-on-year international RPK growth 4Europe 89.0% 88.5% Domestic Japan 1.1% 1.0% -2.0% 2.2% 71.8% for2.8% African airlines1.0% in 1.2%July (to 70.2%6.8%, from 11.0% in 4 Dom. RussianN. Fed. America 1.4% 10.8% 10.2% 0.5%87.5% 86.6% 90.9% June7.7%). Indeed,5.4% the upward1.7% SA demand81.5% trend remains Domestic US4 14.5% 5.6% 4.7% 0.8% 87.9% 5.1% 5.1% 0.1% 84.9% Air Passenger Market Analysis – July 2018 L. America 3 84.2% 84.6% strong. Air Passenger Market Analysis – July 2018 1% of industry RPKs in 2017 2Year-on-year change in load factor 2 3Load factor level Asia Pacific 82.9% 81.8% 4 Note: the seven domestic passenger markets for w hich broken-dow n data are available accountHigher for 30% oilof globaland total commodity RPKs and approximately prices have supported the 82% of total domestic RPKs economic backdrop in a number of countries, Middle East 80.1% 81.3% Note : the total industry and regional grow th rates are based on a constant sample of airlines combiningincluding reported Nigeria, data and estimates although for missing business confidence observations. AirlineAfrica traffic is allocated according to the region in w hich the75.9% carrier73.9% is registered;remain it should snot fragile be considered in South as regional Africa. traffic. (Again, see Chart 2.)

60% 65% 70% 75% 80% 85% 90% Passenger load factors (% of available seat kms, actual) Sources: IATA Economics, IATA Monthly Statistics *Data from 1990 onwards

40 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018 Get the data IATA Economics Consulting New release alerts Access data related to this briefing through To find out more about our tailored To receive email notifications from IATA IATA’s MonthlyAir StatisticsPassenger publication: Market Analysis economics– July 2018 consulting solutions, visit: Economics, select ‘Economic Briefings’ from: 2

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Air Passenger Market Analysis – July 2018 4

AIR PASSENGER MARKET ANALYSIS August 2018 Load factor hits all-time high, alongside solid peak-season growth  Industry-wide revenue passenger kilometres (RPKs) grew by a solid 6.4% year-on-year in August – underlining statistics previous signs of solid growth in passenger traffic during the peak season over the northern hemisphere summer.  The industry-wide load factor posted its highest ever level since our time series began in 1990 (85.3%). As was the case last month, European airlines led the way (88.7%), followed by North American carriers (86.5%).  Domestic India RPKs posted their 48th consecutive month of double-digit annual growth in August. Meanwhile, Asia Pacific carriers topped the international RPK growth chart for the second time in five months.

Further evidence of a solid peak travel season… …but key drivers have become less supportive Year-on-year growth in industryThe moderation-wide revenue in business sentimentThat said, hasthe pacebeen ofdriven growth seenInternational this year to dateRPK growth slows in all regions passenger kilometres (RPKs) byincreased a range toof 6.4%factors, in includingremain heighteneds below thatuncertainty seen in the sameYear period-on-year of 2017 growth in industry-wide international August, up from 6.1% in July. about trade restrictions, geopolitical(7.9%). tensionsThis supports in parts our of existingRPKs view rose that to RP5.6K% in August. (See Chart 5.) the world and region-specific growth,issues suchwhile asremaining Brexit. robust, will slow moderately in The August data provide further evidence of solid calendar-year 2018 relative to 2017.Chart 5 – International passenger traffic growth by growth in RPKs during the peakTo periodbe ofclear, passenger the global composite Purchasing airline region of registration demand over the northern Manhemisphereagers’ Index summer. (PMI) remainsThis c onsistentpartly reflects with annualhigher input costs for airlines Aug 2018 Jul 2018

Passenger volumes have now risen by 6.8% over the translating into a reduced boost to demand from lower 5.6% industry-wide RPK growth remaining at solid rates over Industry 5.5% first eight months of the year relative to the same airfares than we have seen in recent years. Jet fuel the coming months. (See Chart 3.) However, having 7.5% period last year – broadly in line with the five-year prices are currently around 30% higherAsia thanPacific they were 7.2% AUGUST 2018:dropped Air back Passenger from the peak levels reached M in earlyarket- Analysis average growth rate (6.9%). RPKs are currently a year ago, and airlines have also seen upward 6.8% 2018, the indicator continues to suggest that we are Africa 7.4% trending upwards at a similar pace in seasonally pressure on labor costs in a number of cases. unlikely to see any significant or sustained acceleration Middle East 5.4% Air passengeradjusted (SA) growthterms. (See Chart completes 1.) a strong first quarter of 2018 6.2% Meanwhile, although economic activity in parts of the in industry-wide RPK growth in the near term. 5.1% As we have noted before, recent developments world remain very strong – notably the EuropeUS – business 4.5% Chart 3 – Air passenger volume growth and global 4.8% underline our view that 2018 will be another year of surveys currently paint a more mixed L.picture America than they 3.5% composite business confidence measure above-trend growth for industry-wide RPKs. did during the best of the broad-based upturn in 3.7% Diffusion indices % year-on-year N. America 4.1% 65 economic activity late16% last year. (See Chart 2.) 0% 1% 2% 3% 4% 5% 6% 7% 8% Chart 1 – Air passenger volumes Growth in industry RPKsChart (RHS) 2 – Economic conditions (monthly data fromInternational revenue passenger kilometres (% year-on-year) 60 12% composite PMIs, selected regions andSources: countries IATA Economics,) IATA Monthly Statistics Industry RPKs (billion per month) 55 8% 800 Asia Pacific carriers post fastest growth again… 750 50 4% Global composite PMI Airlines based in Asia Pacific topped the growth chart 700 45 index (adv. 2 months, LHS) 0% for the second time in five months, with year-on-year Actual growth of 7.5% in August. The upward trend in 650 40 -4% passenger traffic remains very strong, supported by 600 35 -8% Seasonally structural changes, including ongoing rises in living sideways in SA terms for the past four550 months. As we including ongoingadjusted rises in living standards, as well as 30 -12% standards in the region, as well as network changes notedThe moderation before, this in businessis consistent sentiment with500 hasrecent been mixed driven largeInternational2007 increases2008 2009 RPK2010 in the2011growth 2012number2013 slows2014 of in2015airport all2016 regions connections2017 2018 that translate into time savings for passengers and Sources: IATA Economics, IATA Monthly Statistics, Markit signsby a onrange economic of factors, situation including in the heightened region,450 as uncertainty well as wiYearthin- onthe-year respective growth countries.in industry The-wide latter international translates ultimately stimulate demand. possibleabout trade disruption restrictions, related geopolitical to ATC strikes. tensions in parts of intoL oadtime factor savings rises for to passengers an all-time highand has a similar 400 RPKs rose to 5.6% in August. (See Chart 5.) …followed by Middle East and African carriers the world and region-specific issues such2014 as Brexit.2015 2016 stimulatory2017 impact2018 on demand as reductions in fares. …as is demand for Latin AmericanSources: airlines IATA Economics, IATA Monthly Statistics Industry-wide available seat kilometres (ASKs) grew Chart 5 – International passenger traffic growth by African airlines posted the second fastest growth rate To be clear, the global composite Purchasing …asby Russia5.5% yearposts-on double-year in-digit August growth. As againa result, the It is a similar case for airlines basedAir in passenger Latin America. market overviewairline - regionAugust of 2018 registration in August (6.8%). While this was a slight deceleration Managers’ Index (PMI) remains consistent with annual industry-wide passengerAug 2018 loadJul 2018 factor rose by 0.7 Admittedly, year-on-year growth accelerated in AugustWorld Meanwhile,August 2018 year (%- onyear-on-year)-year growth in domestic Russia% year-to-datefrom July, the bigger picture is that the upward SA industry-wide RPK growth remaining at solid rates over1 percentage1 point1 s relative2 to August3 5.6% 2017, to1 an all- 1 2 3 (to 4.8%, from 3.5% in July). But this mainly stemsshare RPKsRPKIndustry remainedASK inPLF double (%-pt) -digitPLF (level) territory5.5% in AugustRPK for ASK PLF (%-pt)demandPLF (level)trend remains strong, with annual RPK time record high of 85.3%. The load factor rose in fromthe cominga more monthsbeneficial. (See comparison Chart TOTAL3.) with However, MARKET the period having100.0% of the6.4% second5.5% month 0.7%in a row85.3% (13.2%). 6.8%Despite7.5% 5.9% 0.7% 82.4% Asia Pacific 7.2% growth ahead of its five-year average (4.9%). This disruptiondropped backduring from last theyear’s peak Hurricane levels reached season. in While early - headwindsannual termsfrom sanctionsin August and in comparativelyall regions exce modestpt the International 63.8% 5.6% 5.1% 0.4% 85.0% 6.5%6.8% 5.6% comes0.7% despite81.7% an increasingly challenging economic MiddleAfrica East and Latin America. (See Chart 4.) 7.4% traffic2018 , looksthe indicator to be recoveringcontinues tofrom suggest Domestic recent that signs we 36.2%areof growth7.7% in Theeconomic6.2% moderation activity,1.2% in businessdomestic85.7% sentiment Russia7.4% RPKs has been 6.6% drivenbackdrop0.6% International in83.6% the continent’s RPK growth largest slows economies, in all regions with unlikely to see any significant or sustained acceleration Middle East 5.4% softness in demand – which coincided1 with the 2 havePassenger continuedby ad emandrangeto trend ofis upwards factors,continuing3 includingstrongly to trend in6.2%heightened SA upwards terms . uncertaintyin South AfricaYear- onreentering-year growth recession in industry in Q2-wide and international a % of industry RPKs in 2017 Year-on-year change in load factor Load factor level generalin industry strikes-wide seen RPK ingrowth Brazil in – the the near bigger term. picture is about trade restrictions, geopolitical5.1% tensions in parts of RPKs rose to 5.6% in August. (See Chart 5.) Air Passenger Market AnalysisStrong –SA AugustEurope terms momentum 2018 at a slightly in the faster domestic rate4.5% than US capacity. market moderation in business 1 confidence in Nigeria in recent the world and region-specific issues such as Brexit. thatChart passenger 3 – Air trafficpassenger has broadly volume tracked growth sidewaysand global in 4.8% months. (Again, see Chart 2, previous page.) TheL.Chart America strong 4 –economic Passenger backdrop load 3.5%factors in the by US region is continuing Chart 5 – International passenger traffic growth by SAcomposite terms since business April. confidence measure To be clear, the global compositeAug 2018 Aug 2017Purchasing airline region of registration toN. help America to drive robust growth3.7% in domestic passenger Meanwhile, year-on-year growth in international RPKs Diffusion indices % year-on-year agers’All Index-time Aug low* (PMI)4.1% All-time Aug high* Ongoing65 robust upward trend in N America 16% IndustryMan remains consistent85.3% 84.5% with annualflown by airlines based in theAug Middle 2018 Jul East 2018 also fell volumes.0% Year1%-on-2%year 3%growth4% in 5%domestic6% 7%RPKs8% fell Growth in industry RPKs (RHS) 5.6% industryInternational-wide revenue RPK passenger growth kilometres remaining (% year-on-year) at solid rates over Industry 5.5% By60 contrast, strong momentum in the US economy12% slightly Europeto 5.2% in August, from 5.5% in88.7% July.88.1% back in August relative to July (to 5.4%, from 6.2%). Sources: IATA Economics, IATA Monthly Statistics the coming months. (See Chart 3.) However, havingThe region has been adversely impacted by a number 7.5% has helped to underpin a pick-up in international However, the rate remained above the five-year Asia Pacific 7.2% 55 8% N. Americadropped back from the peak levels 86.5%reached86.2% in early- passenger demand for North American airlines. While averageAsia Pacific (4.2%) carriers and p assengerpost fastest traffic growth is continuing again… to of policy measures and geopolitical tensions in recent6.8% 2018, the indicator continues to suggest that we are Africa 7.4% year50 -on-year growth slowed to 3.7% in August, this4% trend Asiaupwards Pacific strongly in SA terms. 84.3% 82.6% years, including the ban on portable electronic devices Global composite PMI Airlines based in Asia Pacific topped the growth chart 5.4% unlikely to see any significant or sustained accelerationand travelMiddle restrictions East . However, passenger volumes6.2% mainly45 reflected developmentsindex (adv. a year 2 months, ago LHS) rather than0% for theL. America second time in five months, with year-on80.5%-year81.6% Recovery in industrydomestic-wide Brazil RPK RPKs growth has in theresumed near term. 5.1% have trendedEurope upwards at an 8% annualized4.5% rate since any change in the current robust trend. The latest growthMiddle of East 7.5% in August. The upward trend in 40 -4% Annual growth in domestic Brazil RPKs slowed80.4% 81.0% annual RPK growth rate was broadly in line with its Chart 3 – Air passenger volume growth and global the start of the year. 4.8% passenger traffic remains very strong, supported by L. America 3.5% Africa 77.9% 75.7% 35 -8% sharply in compositeAugust relative business to confidence July (to measure3.8%, from five-year average pace. structural changes, including ongoing rises in living European traffic is trending sideways…3.7% % year-on-year N. America 4.1% 9.0%). However,Diffusion60% 65% indicesthis 70%was driven75% 80% in large85% part90% by a 30 -12% standards 65in Passengerthe region, load factors as (% well of available as seatnetwork kms, actual) changes 16% Modest acceleration in domestic RPK growth European airlines0% flew1% 5.1%2% more3% international4% 5% 6% RPKs7% 8% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 spikeSources: in IATA trafficEconomics, IATA between Monthly Statistics August and July*Data last from 1990 year onwards that translate into time savingsGrowth in industry for passengers RPKs (RHS) and International revenue passenger kilometres (% year-on-year) AnnualSources: IATA growth Economics, IATA in Monthly domestic Statistics, Markit RPKs increased to 7.7% in rather than60 any slump at present. While the economic 12% in August 2018 than they did in the same month last ultimately stimulate demand. Sources: IATA Economics, IATA Monthly Statistics August, from 7.2% in July. (See Chart 6.) situation remains fragile, passenger traffic has year. However, all of this growth occurred in late-2017 Load factor rises to an all-time high 55 8% …followed by Middle East and African carriers and earlyAsia-2018: Pacific passenger carriers volumes post fastest have now growth tracked again … – continuedAir passenger its broad market recovery detail - August from 2018 its low-point ChartIndustry 6 - wideDome availablestic RPK seatgrowth kilometres by market (ASKs) grew 50 4% reached in early-2016. August 2018 (% year-on-year) Airlines based% year-to-date in Asia Pacific topped the growth chart Aug 2018 Jul 2018 African airlines postedWorld the second fastestGlobal composite growth PMI rate by 5.5% year-on-year in August. As a result, the 1 index1 (adv. 2 months,1 LHS) 2 3 1 1 2 3 7.7% in August (6.8%)45 . Whileshare this was aRPK slight decelerationASK PLF (%-pt) PLF0% (level) for theRPK secondASK timePLF in (%-pt) five months,PLF (level) with year-on-year Industry 7.2% AustraliaAir Passenger and Japan Market post Analysis just modest – August growth 2018 2 industry-wide passenger load factor rose by 0.7 TOTAL MARKET 100.0% 6.4% 5.5% 0.7% 85.3% growth6.8% of 7.5%5.9% in August.0.7% The82.4% upward trend in 22.6% from July, 40the bigger picture is that the upward SA -4% percentageDomestic India points relative to August 2017, to 21.5%an all- Australia and Japan posted the slowest domestic RPK demand Africa trend remains2.2% strong, 3.4%with annual0.6% RPK 2.1% 77.9% passenger2.9% traffic1.0% remains1.4% very strong,71.7% supported by 14.9% timeDomestic record China high of 85.3%. The12.6% load factor rose in growth rates in August (1.5% and 1.1%, respectively). growth Asia Pacificahead35 of its five33.7%-year average9.5% (4.9%).7.3% This 1.7% -8% 84.3% structural9.5% changes,8.3% including0.8% ongoing82.0% rises in living 13.2% In Australia’s case, growth was broadly in line with the Domesticannual Russia terms in August in 10.8%all regions except the Europe 26.6% 5.4% 4.6% 0.6% 88.7% 6.2% 5.0% 1.0% 85.0% comes despite30 an increasingly challenging economic -12% standards in the region, as well as network changes Middle East and Latin5.2% America. (See Chart 4.) five-year average2007 2008 pace2009 (1.4%),2010 2011 2012and2013 traffic2014 has2015 trended2016 2017 2018 Domestic USA 5.5% backdrop Latin America in the continent’s5.2% largest4.4% economies,5.8% with -1.1% 80.5% that 6.1%translate 6.1%into time 0.0%savings 81.7%for passengers and Sources: IATA Economics, IATA Monthly Statistics, Markit 3.8% sideways Middle in East SA terms since9.5% last Octobe5.0% r. 5.8% -0.6% 80.4% 4.9% 4.9% 0.0% 75.5% PassengerDomestic Brazil demand is continuing9.0% to trend upwards in South Africa reentering recession in Q2 and a ultimately stimulate demand. SA terms at a 1.5%slightly faster rate than capacity. North AmericaLoad factor 23.0%rises to an all4.6%-time high4.2% 0.3% 86.5% 5.0% 4.5% 0.4% 84.4% Dom. Australia 2.1% Inmoderation the case inof business Japan, confidencethe year-on in-year Nigeria growth in recent rate …followed by Middle East and African carriers 1.1% masksmonths. the (Again, fact that see passenger Chart 2, previous traffic has page. now) actually Domestic Japan– 0.9% Industry-wide available seat kilometres (ASKs) grew Chart 4 Passenger load factors by region International 63.8% 5.6% 5.1% 0.4% 85.0% African6.5% airlines5.6% posted the0.7% second81.7% fastest growth rate trended upwardsby 5.5% at yeara 6%-on annualized-year in August rate .over As thea result, the 0% 2% 4% 6% 8% 10% 12% 14% 16% 18%Aug20% 201822%Aug24% 2017 Meanwhile, year-on-year growth in international RPKs in August (6.8%). While this was a slight deceleration Domestic revenueAll-time Augpassenger low* kilometresAll- time(% year Aug high*-on-year) Africa 1.9% 6.8% 3.8% 2.2% 78.2% 6.9% 4.3% 1.7% 71.5% Industry 85.3% 84.5% past six months,industry -widehelped passenger by comparatively load factor strong rose by 0.7 Sources: IATA Economics, IATA Monthly Statistics flown Asia by Pacific airlines based18.5% in the Middle7.5% East6.1% also fell 1.1% 82.6% from8.1% July, the7.1% bigger picture0.8% is that80.7% the upward SA economic growth.percentage Volatility point scaused relative by to T yphoonAugust Tal2017,im to an all- Europe 88.7% 88.1% back Europe in August relative23.7% to July (to 5.1%5.4%, from4.5% 6.2%). 0.5% 88.9% demand6.2% trend5.1% remains0.9% strong, 85.4%with annual RPK India and China top the growth chart… last year istime likely record to lend high support of 85.3 to%. the The year load-on- yearfactor rose in The Latinregion America has been adversely2.8% impacted4.8% by a6.5% number -1.3% 81.4% growth7.1% ahead7.2% of its five-0.1%-year average82.2% (4.9%). This N. America 86.5% 86.2% growth comparisonannual terms in the in comingAugust monthsin all , regionsalthough exce pt the Once again, India and China topped the domestic of policy Middle measures East and9.1% geopolitical5.4% tensions 6.3%in recent -0.7% 80.7% comes5.1% despite5.2% an increasingly-0.1% challenging75.6% economic th Asia Pacific this will be Middleoffset in East part and by theLatin impact America. of Typhoon (See Chart Jebi 4.) growth chart. Domestic India RPKs posted their84.3% 82.6%48 years, North including America the ban7.8% on portable3.7% electronic3.3% devices 0.4% 87.2% backdrop5.0% in the3.6% continent’s1.1% largest83.5% economies, with consecutive month of double-digit growth (22.6%), in the September data. L. America 80.5% 81.6% and travel Passengerrestrictions d. emandHowever, is continuingpassenger to volumes trend upwards in South Africa reentering recession in Q2 and a while year-on-year growth in domestic China RPKs have Domestic trendedSA upwardsterms at 36.2%aat slightly an 8% faster annualized7.7% rate than rate6.2% capacity. since 1.2% 85.7% moderation7.4% in 6.6%business confidence0.6% 83.6% in Nigeria in recent Middle East 80.4% 81.0% accelerated to a four-month high (14.9%). the start Dom. Australiaof the year.4 0.9% 1.5%IATA Economics0.8% 0.5% 78.0% months.2.2% (Again,0.5% see Chart1.3% 2, previous78.8% page.) Chart 4 – Passenger load factors by region Africa 77.9% 75.7% Domestic Brazil4 1.2% [email protected]% 4.8% -0.8% 79.5% 5.2% 5.4% -0.1% 80.7% As we have noted before, demand continues to be Aug 2018 Aug 2017 European traffic is trending sideways…1st October 2018 Meanwhile, year-on-year growth in international RPKs 60% 65% 70% 75% 80% 85% 90% Dom. China P.R.4 9.1% All-time Aug14.9% low* 11.7%All-time Aug high* 2.4% 88.0% 13.2% 12.9% 0.2% 84.9% supported inPassenger both load factorscases (% of availableby structural seat kms, actual) changes, Industry 85.3% 84.5% flown by airlines based in the Middle East also fell European airlines4 flew 5.1% more international RPKs Sources: IATA Economics, IATA Monthly Statistics *Data from 1990 onwards Domestic India 1.4% 22.6% 16.1% 4.6% 87.5% 21.2% 17.0% 3.0% 88.1% in August 2018Europe than they did in the same month last 88.7% 88.1% back in August relative to July (to 5.4%, from 6.2%). Domestic Japan4 1.1% 1.1% -0.6% 1.3% 80.3% 2.6% 0.8% 1.3% 71.6% year. However, all4 of this growth occurred in late-2017 The region has been adversely impacted by a number Dom. RussianN. Fed.America 1.4% 13.2% 11.3% 1.6%86.5% 86.2% 90.8% 8.6% 6.3% 1.8% 83.0% and early-2018:4 passenger volumes have now tracked of policy measures and geopolitical tensions in recent Domestic US 14.5% 5.2% 4.6% 0.5% 86.1% 5.1% 5.0% 0.1% 85.1% Asia Pacific 84.3% 82.6% years, including the ban on portable electronic devices 1 2 3 % of industry RPKs in 2017 Year-on-year change in load factor Load factor level and travel restrictions. However, passenger volumes Air Passenger Market Analysis – August 2018 4 L. America 3 80.5% 81.6% Note: the seven domestic passenger markets for w hich broken-dow n data are available account for 30% of global total RPKs and approximately Air Passenger Market Analysis – August 2018 2 have trended upwards at an 8% annualized rate since 82% of total Middledomestic East RPKs 80.4% 81.0% the start of the year. Note : the total industry and regional grow th rates are based on a constant sample of airlines combining reported data and estimates for missing Africa 77.9% 75.7% observations. Airline traffic is allocated according to the region in w hich the carrier is registered;Europe it shouldan not traffic be considered is trending as regional sideways… traffic. 60% 65% 70% 75% 80% 85% 90% Passenger load factors (% of available seat kms, actual) European airlines flew 5.1% more international RPKs Sources: IATA Economics, IATA Monthly Statistics *Data from 1990 onwards in August 2018 than they did in the same month last

41 | HERMES • THE MAGAZINEyear. However, #3 all of› thisJULY-SEPTEMBER growth occurred in late -20182017 Get the data IATA Economics Consultingand early-2018:New passenger release volumes alerts have now tracked Access data related to this briefing through To find out more about our tailored To receive email notifications from IATA IATA’s Monthly Statistics publication: economics consulting solutions, visit: Economics, select ‘Economic Briefings’ from:

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Air Passenger Market Analysis – August 2018 4

statistics Manager, External Relations and Special Events ACI World Telephone: +1 514 373 1254 APRILEmail: [email protected] 2018: Worldwide Traffic Results

Passenger traffic / Freight volumes

(Summary)

Charts and tables

TABLE 1: SUMMARY WORLDWIDE TRAFFIC RESULTS, APRIL 2018 (% CHANGE) April 2018 Year to date 12-month over April 2017 2018 rolling year PaxFlash

International passenger 4.9 7.1 7.9 Domestic passenger 7.1 6.2 5.4 Total passenger 6.1 6.6 6.5 FreightFlash International freight 4.9 5.1 8.0 Domestic freight 3.7 6.0 4.9

Total freight 4.5 5.4 7.1

TABLE 2: PaxFlash summary – April 2018

YE thru April April 2018 YTD April 2018 Regions 2018 % YOY % YOY % YOY

International passengers

Africa 9.6 – 13.2 11.3 TABLE 2: PaxFlash summary February 2018 YTD February YE thru Asia-Pacific February 20189.0 9.2 8.8 Regions 2018 February 2018 % YOY Europe 4.5 % YOY 7.1 % YOY 8.7 LatinInternational America passengers-Caribbean 3.0 6.7 6.4

MiddleAfrica East 11.8 (2.4) 12.6 0.3 10.5 2.0 NorthAsia-Pacific America 9.7 2.2 7.3 5.7 8.2 5.5 Europe 7.2 7.3 9.6 World 4.9 7.1 7.9 Latin America-Caribbean 8.6 7.7 7.7 Domestic passengers Middle East (0.9) (0.7) 3.3 AfricaNorth America 8.0 7.1 5.6 8.5 6.0 5.4 AsiaWorld-Pacific 7.5 10.7 6.6 8.6 8.4 7.6

EuropeDomestic passengers 6.5 6.4 6.4 Africa 5.3 6.3 3.0 Latin America-Caribbean 3.0 3.8 3.8 Asia-Pacific 7.6 5.8 7.1 … … … MiddleEurope East 5.2 6.9 6.2

North America 5.5 4.8 3.7 Latin America-Caribbean 5.5 3.9 3.8 WorldMiddle East … 7.1 … 6.2 … 5.4 TNorthotal Americapassengers 5.1 4.0 3.4 World 6.0 5.1 5.1 ACIAfrica PaxFlash and FreightFlash – April 20189.0 11.7 9.4 5 Total passengers AsiaAfrica-Pacific 9.3 9.9 10.3 8.7 8.0 8.0 EuropeAsia-Pacific 8.2 5.0 6.3 6.9 7.5 8.1 LatinEurope America -Caribbean 6.6 3.0 7.1 4.8 8.7 4.5 MiddleLatin America East- Caribbean 6.5 (2.4) 5.1 0.3 4.9 2.0 Middle East (1.0) (0.7) 3.2 North America 5.0 4.9 4.0 North America 5.5 4.3 3.8 World 6.6 6.1 5.7 6.6 6.6 6.5

TrafficTraffic ta tableble definitions: definitions:

PASSENGERPASSENGER TRAFFIC: TRAFFIC: departing +departing arriving passengers + arriving passengers INTERNATIONAL: traffic performed between the designated airport and an airport in another INTERNATIONAL:country/territory traffic performed between the designated airport and an airport in anotherDOMESTIC: country/territory traffic performed between two airports located in the same country/territory DOMESTIC:TOTAL: international traffic + domestic performed passengers between + direct transit two passengers airports counted located once in(when the breakdown same country/territoryis available) TOTAL:Year-over-year international percentage changes + dome (% YOY)stic are passengers calculated from a +representative direct transit sample. passengers counted once

(whenYOY breakdownYear-over-year same is available) month comparison YearYTD -overYear- toyear date, percentagestarting Jan 201 8changes, compared to (% same YOY) period are in previous calculated year from a representative sample.YE Year end, based on a rolling 12-month period, compared to the same prior 12-month period

YOY Year-over-year same month comparison › 42 | HERMES • THE MAGAZINEYTD Year #3 to date, JULY-SEPTEMBER starting Jan 2018 2018, compared to same period in previous year YE Year end, based on a rolling 12-month period, compared to the same prior 12- month period

ACI PaxFlash and FreightFlash – April 2018 6 statistics

▶ CONTINUED FROM PAGE 42

APRIL: Worldwide Traffic Results Passenger traffic / Freight volumes (Summary)

TABLE 3: FreightFlash summary – April 2018 YE thru April April 2018 YTD April 2018 Regions 2018 % YOY % YOY % YOY International freight Africa … … … AsiaTABLE-Pacific 3: FreightFlash summary – April 20184.8 4.9 8.7 YE thru April April 2018 YTD April 2018 EuropeRegions 4.8 5.1 2018 8.0 % YOY % YOY Latin America-Caribbean 12.3 11.6 % YOY 10.0 International freight Middle East 2.6 0.9 4.1 Africa … … … NorthAsia-Pacific America 4.8 3.6 4.9 5.7 8.7 7.9 WorldEurope 4.8 4.9 5.1 5.1 8.0 8.0 DomesticLatin America freight-Caribbean 12.3 11.6 10.0 Middle East 2.6 0.9 4.1 Africa … … … North America 3.6 5.7 7.9 AsiaWorld-Pacific 4.9 2.6 5.1 4.1 8.0 1.8 EuropeDomestic freight 0.4 1.1 3.8 LatinAfrica America -Caribbean … 13.1 … 12.2 … 6.5 MiddleAsia-Pacific East 2.6 … 4.1 … 1.8 … Europe 0.4 1.1 3.8 North America 3.8 7.0 6.8 Latin America-Caribbean 13.1 12.2 6.5 WorldMiddle East … 3.7 … 6.0 … 4.9 TotalNorth freightAmerica 3.8 7.0 6.8 AfricaWorld 3.7 9.9 6.0 10.7 4.9 12.5 Total freight Asia-Pacific 4.2 4.7 6.8 Africa 9.9 10.7 12.5 EuropeAsia-Pacific 4.2 4.6 4.7 4.8 6.8 7.7 LatinEurope America -Caribbean 4.6 12.5 4.8 11.7 7.7 8.9 MiddleLatin America East -Caribbean 12.5 2.6 11.7 0.9 8.9 4.1 NorthMiddle America East 2.6 3.7 0.9 6.5 4.1 7.2 North America 3.7 6.5 7.2 World 4.5 5.4 7.1 World 4.5 5.4 7.1

TrafficTraffic table definitions: definitions:

FREIGHTFREIGHT TRAFFIC:TRAFFIC: loaded loaded and unloadedand unloaded freight; freight;data in metric data tonnes in metric tonnes INTERNATIONAL: traffic performed between the designated airport and an airport in INTERNATIONAL:another country/territory traffic performed between the designated airport and an airport in anotherDOMESTIC: countr trafficy/territory performed between two airports located in the same DOMESTIC:country/territory traffic performed between two airports located in the same country/territoryTOTAL: international + domestic freight (when breakdown is available) TOTAL:Note: No international domestic freight + trafficdomestic is reported freight by ai(whenrports inbreakdown the Middle East is available) and Africa regions. Note:Year- overNo -domesticyear percentage freight changes traffic (% is YOY) reported are calculated by airports from a inrepresentative the Middle East and Africa regionssample.. Year -over-year percentage changes (% YOY) are calculated from a representative sample.YOY Year -over-year same month comparison YTD Year to date, starting Jan 2018, compared to same period in previous year YE Year end, based on a rolling 12-month period, compared to same prior 12- YOYmonth periodYear- over-year same month comparison YTD Year to date, starting Jan 2018, compared to same period in previous year YE Year end, based on a rolling- ENDS12-month - period, compared to same prior 12- month period ACI PaxFlash and FreightFlash – April 2018 7 - ENDS -

ACI PaxFlash and FreightFlash – April 2018 7

43 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018 statistics

Telephone: +1 514 373 1254 MEmail:AY:Telephone: [email protected] Worldwide +1 514 373 1254 Traffic Results Email: [email protected] Passenger traffic / Freight volumes Summary) ( Charts and tables Charts and tables

TABLE 1: SUMMARY WORLDWIDE TRAFFIC RESULTS, MAY 2018 (% CHANGE) TABLE 1: SUMMARY WORLDWIDE TRAFFIC RESULTS, MAY 2018 (% CHANGE) May 2018 Year-to-date 12-month overMay May 2018 2017 Year2018-to -date rolling12-month year over May 2017 2018 rolling year PaxFlash PaxFlash International passenger 6.6 7.0 7.8 DomesticInternational passenger passenger 4.86. 6 5.97.0 5.47. 8 TotalDomestic passenger passenger 5.64.8 6.45.9 6.45.4 FreightFlashTotal passenger 5.6 6.4 6.4

InternatiFreightFlashonal freight 3.6 4.9 7.2

DomesticInternati onalfreight freight 8.63.6 6.54.9 5.17.2

TotalDomestic freight freight 5.18.6 5.36.5 6.55.1

Total freight 5.1 5.3 6.5

TABLE 2: PaxFlash summary – May 2018

May 2018 YTD May 2018 YE thru May 2018 RegionsTABLE 2: PaxFlash summary – May 2018 %May YOY 2018 YTD% YOYMay 2018 YE %thru YOY May 2018 Regions International passengers % YOY % YOY % YOY TABLE 2: PaxFlash summary – February 2018 International passengers Africa YTD February 8.8 YE thru 12.4 11.4 February 2018 Regions Asia-Pacific 2018 7.88.8 February 2018 9.012.4 8.11.49 Africa% YOY % YOY % YOY EuropeAsia-P acific 7.67.8 7.29.0 8.8.6 9 International passengers LatinEurope America -Caribbean 5.77.6 6.67.2 6.38. 6 Africa 11.8 12.6 10.5 Middle East (4.7) (0.8) 1.1 Asia-Pacific Latin America9.7 -Caribbean 7.3 5.7 8.2 6.6 6.3 Europe NorthMiddle America East7.2 7.3 6.1(4.7 ) 9.6 5.9(0.8) 5.51.1 Latin America-CaribbeanWorld North America8.6 7.7 6.6.16 7.7 7.05.9 7.85.5 Middle East DomesticWorld (0. passengers9) (0.7) 6.6 3.3 7.0 7.8 North America AfricaDomestic 8.0 passengers 5.6 5.0 6.0 7.9 5.8 World 7.5 6.6 8.4 5.6 7.9 7.4 Domestic passengers AsiaAfrica-Pacific 5.0 7.9 5.8 Africa EuropeAsia-Pacific 5.3 6.3 2.05.6 3.0 5.27.9 5.77.4 Asia-Pacific LatinEurope America 7.6 -Caribbean 5.8 3.52.0 7.1 3.75.2 3.5.77 Europe MiddleLatin AmericaEast5.2 -Caribbean 6.9 …3.5 6.2 …3.7 …3. 7 Latin America-Caribbean 5.5 3.9 3.8 NorthMiddle America East 5.4… 4.9… 4.0… Middle East … … … WorldNorth America 4.85.4 5.94.9 5.44.0 North America 5.1 4.0 3.4 Total passengers World World 6.0 5.1 4.8 5.1 5.9 5.4 Total passengers AfricaTotal passengers 7.9 11.0 9.7 Africa AsiaAfrica-Pacific 9.3 10.3 6.37.9 8.0 8.11.02 7.99. 7 Asia-Pacific Europe 8.2 6.3 6.2 7.5 6.7 7.8 ACI PaxFlash and FreightFlash – May 2018 6 Europe Latin America6.6 -Caribbean 7.1 4.1 8.7 4.6 4.4 Latin America-CaribbeanACI PaxFlash6.5 and FreightFlash –5.1 May 2018 4.9 6 Middle East (4.5) (0.8) 1.1 Middle East (1.0) (0.7) 3.2 North America 5.6 5.1 4.2 North America 5.5 4.3 3.8 World World 6.6 5.7 5.6 6.6 6.4 6.4

Traffic table definitions: Traffic table definitions:

PASSENGER TRAFFIC: departingPASSENGER + arriving passengers TRAFFIC: departing + arriving passengers INTERNATIONAL: traffic performed between the designated airport and an airport in another country/territory INTERNATIONAL: traffic performed between the designated airport and an airport in another DOMESTIC: traffic performedcountry/territory between two airports located in the same country/territory TOTAL: international + domesticDOMESTIC: passengers traffic + direct performed transit passengers between counted two airports once (when located breakdown in the same country/territory is available) TOTAL: international + domestic passengers + direct transit passengers counted once (when breakdown Year-over-year percentage changesis available) (% YOY) are calculated from a representative sample.

YOY Year-over-year sameYear month-over comparison-year percentage changes (% YOY) are calculated from a representative sample. YTD Year to date, starting Jan 2018, compared to same period in previous year YE Year end, based on aYO rollingY 12Year-month-over period,-year compared same month to the same comparison prior 12-month period YTD Year-to-date , starting Jan 2018, compared to same period in previous year YE Year end, based on a rolling 12-month period, compared to the same prior 12-month period

44 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018

TABLE 3: FreightFlash summary – May 2018 May 2018 YTD May 2018 YE thru May 2018 Regions % YOY % YOY % YOY International freight Africa … … … Asia-Pacific 4.6 5.0 8.0 Europe 1.5 4.2 7.0 Latin America-Caribbean 9.0 11.3 9.8 Middle East (0.8) 0.5 3.1 North America 4.6 5.7 7.0 World 3.6 4.9 7.2 Domestic freight Africa … … … Asia-Pacific 5.1 4.4 2.1 Europe (1.6) 0.5 3.0 Latin America-Caribbean 7.6 11.2 6.7 Middle East … … … North America 11.3 7.8 6.9 World 8.6 6.5 5.1 Total freight Africa 13.5 11.4 10.9 Asia-Pacific 4.7 4.8 6.3 Europe 1.3 4.0 6.7 Latin America-Caribbean 8.6 11.3 8.8 Middle East (0.9) 0.4 3.1

ACI PaxFlash and FreightFlash – May 2018 7

Asia-Pacific 6.3 8.2 7.9 statistics Europe 6.2 6.7 7.8 Latin America-Caribbean 4.1 4.6 4.4 Middle East (4.5) (0.8) 1.1 North America 5.6 5.1 4.2 World 5.6 6.4 6.4

Traffic table definitions: ▶ CONTINUED FROM PAGE 44

PASSENGER TRAFFIC: departing + arriving passengers INTERNATIONAL: traffic performed between the designated airport and an airport in another country/territory DOMESTIC: traffic performed between two airports located in the same country/territory TOTAL: international + domestic passengers + direct transit passengers counted once (when breakdown MAYis 2018:available) Worldwide Traffic Results Year-over-year percentage changes (% YOY) are calculated from a representative sample. Passenger traffic / Freight volumes YOY Year-over-year same month comparison (Summary)YTD Year-to-date , starting Jan 2018, compared to same period in previous year YE Year end, based on a rolling 12-month period, compared to the same prior 12-month period

TABLE 3: FreightFlash summary – May 2018 May 2018 YTD May 2018 YE thru May 2018 Regions % YOY % YOY % YOY International freight TABLE 3: FreightFlash summary – April 2018 Africa … … … YE thru April April 2018 YTD April 2018 AsiaRegions-Pacific 4.6 5.0 2018 8.0 % YOY % YOY Europe 1.5 4.2 % YOY 7.0 International freight Latin America-Caribbean 9.0 11.3 9.8 Africa … … … Middle East (0.8) 0.5 3.1 Asia-Pacific 4.8 4.9 8.7 NorthEurope America 4.8 4.6 5.1 5.7 8.0 7.0 WorldLatin America -Caribbean 12.3 3.6 11.6 4.9 10.0 7.2 DomesticMiddle East freight 2.6 0.9 4.1 AfricaNorth America 3.6 … 5.7 … 7.9 … World 4.9 5.1 8.0 Asia-Pacific 5.1 4.4 2.1 Domestic freight Europe (1.6) 0.5 3.0 Africa … … … LatinAsia-Pacific America -Caribbean 2.6 7.6 4.1 11.2 1.8 6.7 MiddleEurope East 0.4 … 1.1 … 3.8 … NorthLatin America America-Caribbean 13.1 11.3 12.2 7.8 6.5 6.9 WorldMiddle East … 8.6 … 6.5 … 5.1 TotalNorth Americafreight 3.8 7.0 6.8 World 3.7 6.0 4.9 Africa 13.5 11.4 10.9 Total freight Asia-Pacific 4.7 4.8 6.3 Africa 9.9 10.7 12.5 EuropeAsia-Pacific 4.2 1.3 4.7 4.0 6.8 6.7 LatinEurope America -Caribbean 4.6 8.6 4.8 11.3 7.7 8.8 MiddleLatin America East -Caribbean 12.5 (0.9) 11.7 0.4 8.9 3.1 NorthMiddle AmericaEast 2.6 8.6 0.9 6.9 4.1 6.9 North America 3.7 6.5 7.2 ACIWorld PaxFlash and FreightFlash – May 20185.1 5.3 6.5 World 4.5 5.4 7.1 7

TrafficTraffic table definitions:

FREIGHTFREIGHT TRAFFIC: TRAFFIC: loaded loaded and and unloaded unloaded freight; freight; data data in metric in metric tonnes tonnes INTERNATIONAL:INTERNATIONAL: traffic traffic performed performed between between the the designated designated airport airport and andan airport an airport in another in country/territoryanother country/territory DOMESTIC: traffic performed between two airports located in the same DOMESTIC:country/territory traffic performed between two airports located in the same country/territory TOTAL:TOTAL: international international + +domestic domestic freight freight (when (when breakdown breakdown is available) is available) Note:Note: No No dome domesticstic freight freight traffic traffic is isreported reported by byairports airports in the in theMiddle Middle East East and Africaand Afric regionsa . Yearregions-over. - year percentage changes (% YOY) are calculated from a representative sample. Year-over-year percentage changes (% YOY) are calculated from a representative YOYsample. Year-over-year same month comparison

YTDYOY YearYear--overto-date-year , starting same month Jan 201 comparison8, compared to same period in previous year YEYTD YearYear toend, date, based starting on a rollingJan 2018 12-,month compared period, to comparedsame period to same in previous prior 12 year-month period YE Year end, based on a rolling 12-month period, compared to same prior 12- month period

- ENDS- ENDS - -

ACI PaxFlash and FreightFlash – April 2018 7

45 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018

ACI PaxFlash and FreightFlash – May 2018 8 statistics

JUNE: Worldwide Traffic Results Passenger traffic / Freight volumes (Summary)

TABLE 2: PaxFlash summary – February 2018 YTD February YE thru February 2018 Regions 2018 February 2018 % YOY % YOY % YOY International passengers Africa 11.8 12.6 10.5 Asia-Pacific 9.7 7.3 8.2 Europe 7.2 7.3 9.6 Latin America-Caribbean 8.6 7.7 7.7 Middle East (0.9) (0.7) 3.3 North America 8.0 5.6 6.0 World 7.5 6.6 8.4 Domestic passengers Africa 5.3 6.3 3.0 Asia-Pacific 7.6 5.8 7.1 Europe 5.2 6.9 6.2 Latin America-Caribbean 5.5 3.9 3.8 Middle East … … … North America 5.1 4.0 3.4 World 6.0 5.1 5.1 Total passengers Africa 9.3 10.3 8.0 Asia-Pacific 8.2 6.3 7.5 Europe 6.6 7.1 8.7 Latin America-Caribbean 6.5 5.1 4.9 Middle East (1.0) (0.7) 3.2 North America 5.5 4.3 3.8 World 6.6 5.7 6.6

Traffic table definitions:

YOY Year-over-year same month comparison YTD Year to date, starting Jan 2018, compared to same period in previous year YE Year end, based on a rolling 12-month period, compared to the same prior 12-month period

46 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018

statistics

▶ CONTINUED FROM PAGE 46

JUNE 2018: Worldwide Traffic Results Passenger traffic / Freight volumes (Summary)

TABLE 3: FreightFlash summary – April 2018 YE thru April April 2018 YTD April 2018 Regions 2018 % YOY % YOY % YOY International freight Africa … … … Asia-Pacific 4.8 4.9 8.7 Europe 4.8 5.1 8.0 Latin America-Caribbean 12.3 11.6 10.0 Middle East 2.6 0.9 4.1 North America 3.6 5.7 7.9 World 4.9 5.1 8.0 Domestic freight Africa … … … Asia-Pacific 2.6 4.1 1.8 Europe 0.4 1.1 3.8 Latin America-Caribbean 13.1 12.2 6.5 Middle East … … … North America 3.8 7.0 6.8 World 3.7 6.0 4.9 Total freight Africa 9.9 10.7 12.5 Asia-Pacific 4.2 4.7 6.8 Europe 4.6 4.8 7.7 Latin America-Caribbean 12.5 11.7 8.9 Middle East 2.6 0.9 4.1 North America 3.7 6.5 7.2 World 4.5 5.4 7.1

Traffic table definitions:

FREIGHT TRAFFIC: loaded and unloaded freight; data in metric tonnes INTERNATIONAL: traffic performed between the designated airport and an airport in another country/territory DOMESTIC: traffic performed between two airports located in the same country/territory TOTAL: international + domestic freight (when breakdown is available) Note: No domestic freight traffic is reported by airports in the Middle East and Africa regions. Year-over-year percentage changes (% YOY) are calculated from a representative sample.

- ENDS -

ACI PaxFlash and FreightFlash – April 2018 7

47 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018 statistics economic development JUL 2018: Air Transport Monthly Monitor World Results and Analyses JULfor FEB2018: 2018. Air Transport Total scheduled Monthly services Monitor (Domestic and international) World Results and Analyses for MAY 2018. Total scheduled services (domestic and international). Air Transport Bureau ŚƚƚƉ͗ͬͬǁǁǁ͘ŝĐĂŽ͘ŝŶƚͬƐƵƐƚĂŝŶĂďŝůŝƚǇͬWĂŐĞƐͬŝƌ>&ϮϬϭϰͲϮϬϭϱ>&ϮϬϭϯͲϮϬϭϰ ͲdƌĂĨĨŝĐͲDŽŶŝƚŽƌ͘ĂƐƉǆ E-mail: [email protected] GLOBAL KEY FIGURES MAY 2018 OUTLOOK* - JUN 2018 JUN JUL ; (versus MAY 2017) (versus JUN 2017) ZW< +6.1% ^< +5.9% &d< +4.2% >&͗80.1% +0.0 pt ^< +6.0% Ύ^ŽƵƌĐĞK'

PASSENGER TRAFFIC CAPACITY ZĞǀĞŶƵĞWĂƐƐĞŶŐĞƌͲ<ŝůŽŵĞƚƌĞƐͲZW< ǀĂŝůĂďůĞ^ĞĂƚͲ<ŝůŽŵĞƚƌĞƐͲ^< tŽƌůĚƉĂƐƐĞŶŐĞƌƚƌĂĨĨŝĐŐƌĞǁďǇнϲ͘ϭйzŽzŝŶDĂǇϮϬϭϴ͕ͲϬ͘ϭƉĞƌĐĞŶƚĂŐĞƉŽŝŶƚůŽǁĞƌ ĂƉĂĐŝƚǇǁŽƌůĚǁŝĚĞŝŶĐƌĞĂƐĞĚďǇнϱ͘ϵйzŽzŝŶDĂǇϮϬϭϴ͕ƐĂŵĞĂƐƚŚĞŐƌŽǁƚŚ ĨƌŽŵƚŚĞŐƌŽǁƚŚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ͘WĞƌĨŽƌŵĂŶĐĞŽĨƌĞŐŝŽŶƐŚĂƐďĞĞŶĂŵŝǆ͘dŚƌĞĞ ŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ;нϱ͘ϵйͿ͘ ƌĞŐŝŽŶƐ͕ĨƌŝĐĂ͕ƐŝĂͬWĂĐŝĨŝĐĂŶĚƚŚĞDŝĚĚůĞĂƐƚ͕ĐŽŶƚŝŶƵĞĚƚŽƐĞĞƐůŽǁĚŽǁŶŝŶ /ŶƌĞƐƉŽŶƐĞƚŽƚŚĞƉĂƐƐĞŶŐĞƌƚƌĂĨĨŝĐĚĞŵĂŶĚ͕ƚŚĞĞǆƉĂŶƐŝŽŶŽĨĐĂƉĂĐŝƚǇŝƐ ŐƌŽǁƚŚ͘ĨƌŝĐĂĞǆƉĞƌŝĞŶĐĞĚƚŚĞǁĞĂŬĞƐƚƉĞƌĨŽƌŵĂŶĐĞĂŶĚǁĂƐƚŚĞŽŶůǇƌĞŐŝŽŶƉŽƐƚŝŶŐ ĞǆƉĞĐƚĞĚƚŽďĞĂƚнϲ͘ϬйŝŶ:ƵŶĞϮϬϭϴ͘ ŶĞŐĂƚŝǀĞŐƌŽǁƚŚ͘dŚĞƚŚƌĞĞŽƚŚĞƌƌĞŐŝŽŶƐ͕ƵƌŽƉĞ͕>ĂƚŝŶŵĞƌŝĐĂͬĂƌŝďďĞĂŶĂŶĚEŽƌƚŚ ŵĞƌŝĐĂ͕ƉŽƐƚĞĚƐůŝŐŚƚĂĐĐĞůĞƌĂƚŝŽŶŝŶƚƌĂĨĨŝĐŐƌŽǁƚŚ͘ŽŵĞƐƚŝĐƚƌĂĨĨŝĐĚĞŵĂŶĚŝŶ/ŶĚŝĂ ĂŶĚŚŝŶĂĐŽŶƚŝŶƵĞĚƚŽďĞƐƚƌŽŶŐ͕ĂŶĚďŽƚŚŐƌĞǁĚŽƵďůĞͲĚŝŐŝƚĂůůǇ͘ ϴϬϬ ϭϬй ϵϬϬ ϴй ZW< ZW

ϯϬϬ ϰй ZW< ϮϬϬ ϮϬϬ Ϯй ϭϬϬ ϭϬϬ Ϭ Ϭй Ϭ Ϯй :ƵůͲϭϳ :ĂŶͲϭϴ :ƵŶͲϭϳ :ƵŶͲϭϴ KĐƚͲϭϳ ƉƌͲϭϴ ^ĞƉͲϭϳ &ĞďͲϭϴ :ƵůͲϭϳ ĞĐͲϭϳ ƵŐͲϭϳ EŽǀͲϭϳ DĂƌͲϭϴ :ĂŶͲϭϴ DĂǇͲϭϴ :ƵŶͲϭϳ KĐƚͲϭϳ ƉƌͲϭϴ ^ĞƉͲϭϳ &ĞďͲϭϴ ĞĐͲϭϳ ƵŐͲϭϳ EŽǀͲϭϳ DĂƌͲϭϴ DĂǇͲϭϴ ;^ŽƵƌĐĞ͗/K͕/d͕K'Ϳ ;^ŽƵƌĐĞ͗/K͕/d͕K'Ϳ /ŶƚĞƌŶĂƚŝŽŶĂůdƌĂĨĨŝĐǀƐ͘dŽƵƌŝƐƚƌƌŝǀĂůƐ >ŽĂĚ&ĂĐƚŽƌͲ>&

/ŶƚĞƌŶĂƚŝŽŶĂůƉĂƐƐĞŶŐĞƌƚƌĂĨĨŝĐŐƌĞǁďǇнϱ͘ϴйzŽzŝŶDĂǇϮϬϭϴ͕нϭ͘ϬƉĞƌĐĞŶƚĂŐĞ dŚĞƉĂƐƐĞŶŐĞƌ>ŽĂĚ&ĂĐƚŽƌƌĞĂĐŚĞĚϴϬ͘ϭйŝŶDĂǇϮϬϭϴ͕ͲϮ͘ϮƉĞƌĐĞŶƚĂŐĞ ƉŽŝŶƚŚŝŐŚĞƌĨƌŽŵƚŚĞŐƌŽǁƚŚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ͘dŚƌĞĞƌĞŐŝŽŶƐ͕ƵƌŽƉĞ͕>ĂƚŝŶ ƉŽŝŶƚƐůŽǁĞƌƚŚĂŶƚŚĞ>&ƌĞĐŽƌĚĞĚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ͘ ŵĞƌŝĐĂͬĂƌŝďďĞĂŶĂŶĚEŽƌƚŚŵĞƌŝĐĂ͕ĂĐĐĞůĞƌĂƚĞĚŝŶŐƌŽǁƚŚ͘ƐŝĂͬWĂĐŝĨŝĐĐŽŶƚŝŶƵĞĚ ƐƚƌĂĨĨŝĐŐƌŽǁƚŚŽƵƚƉĂĐĞĚƚŚĞĐĂƉĂĐŝƚǇĞǆƉĂŶƐŝŽŶǁŝƚŚĂƐŵĂůůĚŝĨĨĞƌĞŶĐĞ͕ƚŚĞ ƚŽďĞƚŚĞĨĂƐƚĞƐƚŐƌŽǁŝŶŐƌĞŐŝŽŶ͕ĨŽůůŽǁĞĚďǇ>ĂƚŝŶŵĞƌŝĐĂͬĂƌŝďďĞĂŶ͘ DĂǇ>&ǁĂƐĂƚƚŚĞƐĂŵĞůĞǀĞůĂƐƚŚĞƌĂƚĞŝŶƚŚĞƐĂŵĞƉĞƌŝŽĚŝŶϮϬϭϳ͘ dŚĞŐƌŽǁƚŚŽĨŝŶƚĞƌŶĂƚŝŽŶĂůƚŽƵƌŝƐƚĂƌƌŝǀĂůƐΎĨŽůůŽǁĞĚĂƐŝŵŝůĂƌŵŽŶƚŚůǇƚƌĞŶĚ͘

ϭϲй ŝŶƚĞƌŶĂƚŝŽŶĂůZW< ϴϳй >&ϮϬϭϳͲϮϬϭϴ ŝŶƚĞƌŶĂƚŝŽŶĂůƚŽƵƌŝƐƚĂƌƌŝǀĂůƐΎ >&ϮϬϭϲͲϮϬϭϳ ϭϰй ϴϱй ϴϰ͘ϳй ϴϰ͘ϱй ϭϮй ϭϬ͘ϲй ϭϬй ϴϯй ϴϭ͘ϵй ϴϮ͘ϰй ϴϮ͘ϯй ϴ͘ϲй ϴ͘ϭй ϴϭ͘ϲй

ϳ͘ϵй ϳ͘ϰй ϳ͘ϯй ϴϬ͘ϴй ϴϬ͘ϳй ϴй ϲ͘ϳй ϳ͘Ϯй ϴϭй ϴϬ͘Ϯй ϴϬ͘ϰй ϴϬ͘ϭй ϲ͘Ϭй ϵ͘Ϭй ϱ͘ϴй >& ϲй ϳ͘ϱй ϳ͘Ϭй ϱ͘ϭй ϰ͘ϴй ϲ͘Ϯй ϲ͘ϱй ϲ͘Ϯй ϲ͘ϱй ϳϵй ϳϵ͘ϲй ϴϬ͘ϭй zŽzŐƌŽǁƚŚ ϱ͘ϳй ϱ͘Ϯй ϰй ϰ͘ϰй ϰ͘ϱй Ϯй ϳϳй Ϭй ϳϱй :Ƶů :ĂŶ :ƵŶ KĐƚ Ɖƌ ^ĞƉ &Ğď ĞĐ ƵŐ EŽǀ DĂƌ DĂǇ :ƵůͲϭϳ :ĂŶͲϭϴ :ƵŶͲϭϳ KĐƚͲϭϳ ƉƌͲϭϴ ^ĞƉͲϭϳ &ĞďͲϭϴ ĞĐͲϭϳ ƵŐͲϭϳ EŽǀͲϭϳ DĂƌͲϭϴ DĂǇͲϭϴ

ΎhEtdKĞĨŝŶŝƚŝŽŶ ;^ŽƵƌĐĞ͗/d͕hEtdKͿ ;^ŽƵƌĐĞ͗/dͿ

FREIGHT TRAFFIC ϭϲй &d< &ƌĞŝŐŚƚdŽŶŶĞͲ<ŝůŽŵĞƚƌĞƐͲ&d< ϭϭ͘ϰй ϭϮ͘ϭй ϭϮй ϭϭ͘Ϭй tŽƌůĚĨƌĞŝŐŚƚƚƌĂĨĨŝĐŐƌĞǁďǇнϰ͘ϮйzŽzŝŶDĂǇϮϬϭϴ͕нϬ͘ϭƉĞƌĐĞŶƚĂŐĞƉŽŝŶƚ ϵ͘Ϯй ϴ͘ϴй ŚŝŐŚĞƌƚŚĂŶƚŚĞŐƌŽǁƚŚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ͘&ƌĞŝŐŚƚƚƌĂĨĨŝĐŐƌŽǁƚŚŵŽĚĞƌĂƚĞĚŝŶ ϴ͘Ϭй ϴй ϲ͘ϴй ƌĞĐĞŶƚŵŽŶƚŚƐĚƵĞƚŽƚŚĞƐůŽǁŝŶŐǁŽƌůĚƚƌĂĚĞ͘ĨƌŝĐĂ͕ƵƌŽƉĞĂŶĚƚŚĞDŝĚĚůĞĂƐƚ ƉŽƐƚĞĚĂĚĞĐĞůĞƌĂƚŝŽŶŝŶŐƌŽǁƚŚǁŝƚŚĨƌŝĐĂĞǆƉĞƌŝĞŶĐŝŶŐƚŚĞŵŽƐƚƐŝŐŶŝĨŝĐĂŶƚ ϱ͘ϵй ϱ͘ϳй ϰ͘ϭй ϰ͘Ϯй zŽzŐƌŽǁƚŚ ϰй ƐůŽǁĚŽǁŶĂŶĚďĞĐŽŵŝŶŐƚŚĞŽŶůǇƌĞŐŝŽŶǁŝƚŚŶĞŐĂƚŝǀĞŐƌŽǁƚŚ͘KŶƚŚĞƉŽƐŝƚŝǀĞ ƐŝĚĞ͕ŝŵƉƌŽǀĞŵĞŶƚǁĂƐŽďƐĞƌǀĞĚŝŶƐŝĂͬWĂĐŝĨŝĐ͕>ĂƚŝŶŵĞƌŝĐĂͬĂƌŝďďĞĂŶĂŶĚ ϭ͘ϳй Ϭй EŽƌƚŚŵĞƌŝĐĂ͕ĂŶĚĂůůƚŚĞƚŚƌĞĞƌĞŐŝŽŶƐŐƌĞǁĨĂƐƚĞƌƚŚĂŶǁŽƌůĚĂǀĞƌĂŐĞ͕ŽĨĨƐĞƚƚŝŶŐ

ƚŚĞǁĞĂŬŶĞƐƐŝŶŽƚŚĞƌƌĞŐŝŽŶƐ͘>ĂƚŝŶŵĞƌŝĐĂͬĂƌŝďďĞĂŶĐŽŶƚŝŶƵĞĚƚŽďĞƚŚĞ :ƵůͲϭϳ :ĂŶͲϭϴ :ƵŶͲϭϳ KĐƚͲϭϳ ƉƌͲϭϴ ^ĞƉͲϭϳ &ĞďͲϭϴ ĞĐͲϭϳ ƵŐͲϭϳ EŽǀͲϭϳ DĂƌͲϭϴ ĨĂƐƚĞƐƚŐƌŽǁŝŶŐƌĞŐŝŽŶĂŶĚǁĂƐƚŚĞŽŶůǇƌĞŐŝŽŶƉŽƐƚŝŶŐĚŽƵďůĞͲĚŝŐŝƚŝŶĐƌĞĂƐĞ͘ DĂǇͲϭϴ ;^ŽƵƌĐĞ͗/dͿ

ZKEzD^͗ /͗ŝƌƉŽƌƚƐŽƵŶĐŝů/ŶƚĞƌŶĂƚŝŽŶĂů͖^<͗ǀĂŝůĂďůĞ^ĞĂƚͲ<ŝůŽŵĞƚƌĞƐ͖/d͗/ŶƚĞƌŶĂƚŝŽŶĂůŝƌdƌĂŶƐƉŽƌƚƐƐŽĐŝĂƚŝŽŶ͖&d<͗&ƌĞŝŐŚƚdŽŶŶĞͲ<ŝůŽŵĞƚƌĞƐ͖>&͗WĂƐƐĞŶŐĞƌ>ŽĂĚ&ĂĐƚŽƌ͖ K'͗KĨĨŝĐŝĂůŝƌůŝŶĞ'ƵŝĚĞ͖ZW<͗ZĞǀĞŶƵĞWĂƐƐĞŶŐĞƌͲ<ŝůŽŵĞƚƌĞƐ͖hEtdK͗tŽƌůĚdŽƵƌŝƐŵKƌŐĂŶŝǌĂƚŝŽŶ͖zŽz͗zĞĂƌͲŽŶͲǇĞĂƌ͖zd͗zĞĂƌͲƚŽͲĚĂƚĞ͘

48 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018 statistics

▶ CONTINUED FROM PAGE 48 economic development JUL 2018: Air Transport Monthly Monitor JUL 2018: Air Transport Monthly Monitor World Results and AnalysesWorld for Results FEB and Analyses 2018. for MAY 2018.Total Total scheduled scheduled services (domestic services and international). (Domestic and international) Air Transport Bureau E-mail: [email protected]

TOP 15 AIRPORTS (Ranked by aircraft departures, passengers and volume of freight) MAY 2018: +2.8%, +3.5%, and +3.7% YoY in terms of aircraft departures, passengers and freight for the Top 15 Dzϭϴ

ŝƌƉŽƌƚƐ ĞƉĂƌƚƵƌĞƐ zŽz ŝƌƉŽƌƚƐ WĂƐƐĞŶŐĞƌƐΎ zŽz ŝƌƉŽƌƚƐ &ƌĞŝŐŚƚΎΎ zŽz ;ƌĂŶŬŝŶŐďǇŶƵŵďĞƌŽĨĚĞƉĂƌƚƵƌĞƐͿ ;ƌĂŶŬŝŶŐďǇŶƵŵďĞƌŽĨƉĂƐƐĞŶŐĞƌƐͿ ;ƌĂŶŬŝŶŐďǇƚŽŶŶĞƐŽĨĨƌĞŝŐŚƚͿ ƚůĂŶƚĂ'͕h^;d>Ϳ ϯϴ͕ϵϭϱ Ϭ͘ϲй ƚůĂŶƚĂ'͕h^;d>Ϳ ϰ͕ϳϲϵ͕ϴϮϳ Ϯ͘Ϭй ,ŽŶŐ<ŽŶŐ͕E;,<'Ϳ ϰϮϴ͕ϬϬϬ ϰ͘ϳй ŚŝĐĂŐŽ/>͕h^;KZͿ ϯϴ͕Ϯϰϱ ϯ͘ϱй ĞŝũŝŶŐ͕E;W<Ϳ ϰ͕ϭϳϰ͕ϵϭϮ ϲ͘ϴй DĞŵƉŚŝƐdE͕h^;DDͿ ϯϴϮ͕ϲϮϮ ϴ͘ϳй >ŽƐŶŐĞůĞƐ͕h^;>yͿ ϯϬ͕ϯϯϳ ϯ͘Ϭй >ŽƐŶŐĞůĞƐ͕h^;>yͿ ϯ͕ϳϳϮ͕ϯϱϮ ϱ͘ϯй ^ŚĂŶŐŚĂŝ͕E;Ws'Ϳ ϯϭϵ͕Ϯϵϰ ϭ͘Ϭй ĂůůĂƐͬ&ŽƌƚtŽƌƚŚdy͕h^;&tͿ Ϯϴ͕ϰϳϰ Ϯ͘ϰй ŚŝĐĂŐŽ/>͕h^;KZͿ ϯ͕ϲϮϮ͕ϰϯϰ ϰ͘ϴй ŶĐŚŽƌĂŐĞ<͕h^;EͿ ϮϰϮ͕ϳϳϰ ϲ͘ϵй ĞŝũŝŶŐ͕E;W<Ϳ Ϯϲ͕ϬϱϬ ϱ͘Ϭй dŽŬǇŽ͕:W;,EͿ ϯ͕ϯϵϰ͕Ϭϴϵ ͲϮ͘ϵй /ŶĐŚĞŽŶ͕ŽŶĚŽŶ͕';>,ZͿ ϯ͕ϯϯϵ͕ϵϮϮ ϯ͘ϭй ƵďĂŝ͕;yͿ ϮϮϭ͕ϯϲϯ Ͳϱ͘Ϭй ŚĂƌůŽƚƚĞE͕h^;>dͿ Ϯϰ͕ϲϯϵ Ϭ͘ϴй ƵďĂŝ͕;yͿ ϯ͕Ϯϵϰ͕ϲϯϮ Ͳϯ͘ϴй >ŽƵŝƐǀŝůůĞ;D^Ϳ Ϯϯ͕ϮϬϬ Ͳϭ͘ϲй ŵƐƚĞƌĚĂŵ͕E>;D^Ϳ ϯ͕ϮϬϬ͕ϭϯϯ ϯ͘Ϭй dŽŬǇŽ͕:W;EZdͿ ϭϵϱ͕ϳϱϭ ϱ͘ϵй &ƌĂŶŬĨƵƌƚ͕;&ZͿ ϮϮ͕ϴϱϰ ϵ͘ϭй ^ŚĂŶŐŚĂŝ͕E;Ws'Ϳ ϯ͕Ϭϳϲ͕ϳϵϲ ϲ͘ϰй dĂŝƉĞŝ͕E;dWͿ ϭϵϱ͕ϯϰϵ ϱ͘ϭй ^ŚĂŶŐŚĂŝ͕E;Ws'Ϳ Ϯϭ͕ϯϰϲ Ϯ͘ϰй &ƌĂŶŬĨƵƌƚ͕;&ZͿ ϯ͕Ϭϲϴ͕ϯϳϳ ϵ͘ϱй DŝĂŵŝ&>͕h^;D/Ϳ ϭϴϲ͕ϬϴϬ ϵ͘Ϭй WĂƌŝƐ͕&Z;'Ϳ ϮϬ͕ϵϬϮ Ͳϭ͘ϲй WĂƌŝƐ͕&Z;'Ϳ ϯ͕Ϭϰϭ͕ϯϮϳ Ϯ͘ϭй ŽŚĂ͕Y;K,Ϳ ϭϴϰ͕ϯϳϮ ϰ͘ϲй EĞǁĞůŚŝ͕/E;>Ϳ ϮϬ͕ϳϯϴ ϵ͘ϭй ,ŽŶŐ<ŽŶŐ͕E;,<'Ϳ ϯ͕Ϭϭϲ͕ϬϬϬ ϭ͘ϭй >ŽƐŶŐĞůĞƐ͕h^;>yͿ ϭϴϮ͕Ϯϲϵ Ϭ͘ϴй >ŽŶĚŽŶ͕';>,ZͿ ϮϬ͕ϲϳϬ Ϭ͘ϰй ĂůůĂƐͬ&ŽƌƚtŽƌƚŚdy͕h^;&tͿ Ϯ͕ϵϴϮ͕ϱϯϵ ϯ͘ϭй ^ŝŶŐĂƉŽƌĞ͕^';^/EͿ ϭϴϬ͕ϱϬϬ ϭ͘ϴй dŽƌŽŶƚŽKE͕;zzͿ ϮϬ͕ϰϭϯ ϲ͘ϯй EĞǁĞůŚŝ͕/E;>Ϳ Ϯ͕ϵϱϬ͕ϭϴϯ ϴ͘ϲй &ƌĂŶŬĨƵƌƚ͕;&ZͿ ϭϳϯ͕ϳϲϮ Ͳϭ͘ϵй ^ĂŶ&ƌĂŶĐŝƐĐŽ͕h^;^&KͿ ϮϬ͕ϭϭϭ ϰ͘ϲй 'ƵĂŶŐǌŚŽƵ͕E;EͿ Ϯ͕ϴϮϯ͕Ϭϵϰ ϱ͘ϴй ĞŝũŝŶŐ͕E;W<Ϳ ϭϳϮ͕ϳϱϮ ϲ͘ϯй

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TOP 15 AIRLINE GROUPS (Ranked by RPK) Dzϭϴ ZW<;ďŝůůŝŽŶͿ й^ŚĂƌĞ ƵŵƵůĂƚŝǀĞ MAY 2018: +6.0% YoY in terms of RPK for the Top 15 zŽz ŽĨtŽƌůĚ Ͳ ϱ ϭϬ ϭϱ ϮϬ Ϯϱ ϯϬ ϯϱ й^ŚĂƌĞ dŽƚĂů /ŶƚĞƌŵƐŽĨZW<͕ƚŚĞdŽƉϭϱĂŝƌůŝŶĞŐƌŽƵƉƐĂĐĐŽƵŶƚĞĚĨŽƌϰϴ͘ϱйŽĨǁŽƌůĚƚŽƚĂůZW<ŝŶDĂǇϮϬϭϴ͕ 1 ŵĞƌŝĐĂŶ ϯϮ͘ϲ ϭ͘ϲй ϱ͘Ϭй ϱ͘Ϭй ĂŶĚŐƌĞǁďǇнϲ͘ϬйzŽz͘dŚŝƐŐƌŽǁƚŚǁĂƐͲϬ͘ϭƉĞƌĐĞŶƚĂŐĞƉŽŝŶƚůŽǁĞƌƚŚĂŶƚŚĞǁŽƌůĚĂǀĞƌĂŐĞŽŶ hŶŝƚĞĚ ϯϭ͘ϳ ϲ͘ϳй ϰ͘ϵй ϵ͘ϵй ĞůƚĂ ϯϭ͘ϳ Ϯ͘ϵй ϰ͘ϵй ϭϰ͘ϴй ƐĐŚĞĚƵůĞĚƐĞƌǀŝĐĞƐ͘ůůƚŚĞdŽƉϭϱĂŝƌůŝŶĞŐƌŽƵƉƐƉŽƐƚĞĚzŽzŝŶĐƌĞĂƐĞƐ͘ 2 >ƵĨƚŚĂŶƐĂ'ƌŽƵƉ Ϯϰ͘ϴ ϴ͘ϯй ϯ͘ϴй ϭϴ͘ϳй ŵĞƌŝĐĂŶƌĂŶŬĞĚϭƐƚĂŶĚŐƌĞǁďǇнϭ͘ϲй͘hŶŝƚĞĚĐŽŶƚŝŶƵĞĚƚŽƌĞĐŽƌĚƚŚĞƐƚƌŽŶŐĞƐƚŐƌŽǁƚŚĂŵŽŶŐ &Ͳ<>D Ϯϰ͘Ϭ Ϯ͘ϰй ϯ͘ϳй ϮϮ͘ϰй 3 /' Ϯϯ͘ϰ ϭϬ͘Ϭй ϯ͘ϲй Ϯϲ͘Ϭй ƚŚĞdŽƉϯĂŝƌůŝŶĞƐĂƚнϲ͘ϳй͕ĂŶĚƌĞƚĂŝŶĞĚƚŚĞϮŶĚƉŽƐŝƚŝŽŶ͕ĨŽůůŽǁĞĚďǇĞůƚĂ͘^ŽƵƚŚǁĞƐƚƌŽƐĞďǇ 1 ŵŝƌĂƚĞƐ Ϯϭ͘ϰ Ϭ͘ϯй ϯ͘ϯй Ϯϵ͘ϯй нϰ͘ϮйzŽzŝŶƚƌĂĨĨŝĐ͕ĂŶĚŝŵƉƌŽǀĞĚϭƉŽƐŝƚŝŽŶƚŽϵƚŚ͘ŝƌĂŶĂĚĂƌĂŶŬĞĚϭϰƚŚ͕ĂŶĚƌĞĐŽƌĚĞĚƚŚĞ ŚŝŶĂ^ŽƵƚŚĞƌŶ ϮϬ͘ϴ ϭϮ͘ϳй ϯ͘Ϯй ϯϮ͘ϱй ƐƚƌŽŶŐĞƐƚŐƌŽǁƚŚ;нϳ͘ϮйͿǁŝƚŚŝŶƚŚĞEŽƌƚŚŵĞƌŝĐĂŶĂŝƌůŝŶĞƐŝŶƚŚĞdŽƉϭϱ͘ ^ŽƵƚŚǁĞƐƚ ϭϴ͘ϴ ϰ͘Ϯй Ϯ͘ϵй ϯϱ͘ϰй ŝƌŚŝŶĂ ϭϳ͘ϵ ϭϭ͘ϲй Ϯ͘ϴй ϯϴ͘Ϯй ŵŝƌĂƚĞƐĞǆƉĞƌŝĞŶĐĞĚƚŚĞƐůŽǁĞƐƚŐƌŽǁƚŚĂŵŽŶŐƚŚĞdŽƉϭϱďǇĂŵĂƌŐŝŶĂůнϬ͘ϯй͕ĂŶĚǁĞŶƚĚŽǁŶϯ ŚŝŶĂĂƐƚĞƌŶ ϭϲ͘ϰ ϭϬ͘ϱй Ϯ͘ϱй ϰϬ͘ϳй 1 ƉŽƐŝƚŝŽŶƐƚŽϳƚŚ͘ ZǇĂŶĂŝƌ ϭϱ͘ϱ ϱ͘ϵй Ϯ͘ϰй ϰϯ͘ϭй dƵƌŬŝƐŚŝƌůŝŶĞƐ ϭϮ͘Ϯ 1 ϱ͘Ϭй ϭ͘ϵй ϰϱ͘Ϭй dŚƌĞĞƵƌŽƉĞĂŶĂŝƌůŝŶĞŐƌŽƵƉƐ͕>ƵĨƚŚĂŶƐĂ͕&Ͳ<>D͕ĂŶĚ/'ƌĂŶŬĞĚŽǀĞƌŵŝƌĂƚĞƐĂƚϰƚŚ͕ϱƚŚ͕ĂŶĚ ŝƌĂŶĂĚĂ ϭϭ͘ϰ ϳ͘Ϯй ϭ͘ϴй ϰϲ͘ϴй ^ŝŶŐĂƉŽƌĞŝƌůŝŶĞƐ'ƌŽƵƉ ϭϭ͘Ϭ ϲƚŚ͕ƌĞƐƉĞĐƚŝǀĞůǇ͕ĂŶĚƉŽƐƚĞĚƌĞůĂƚŝǀĞůǇƐƚƌŽŶŐŐƌŽǁƚŚĞǆĐĞƉƚĨŽƌ&Ͳ<>DǁŝƚŚĂŵŽĚĞƌĂƚĞŐƌŽǁƚŚŽĨ ϵ͘ϲй ϭ͘ϳй ϰϴ͘ϱй нϮ͘ϰй͘dƵƌŬŝƐŚŝƌůŝŶĞƐŐƌĞǁŵŽĚĞƐƚůǇďǇнϱ͘Ϭй͕ĂŶĚƌĞŵĂŝŶĞĚĂƚϭϯƚŚ͘ dŽƉϭϱdŽƚĂůZW<Ɛ ϯϭϯ ďŝůůŝŽŶ ϲ͘Ϭй ϰϴ͘ϱй tŽƌůĚdŽƚĂůZW<Ɛ ϲϰϳ ďŝůůŝŽŶ ϲ͘ϭй ϭϬϬ͘Ϭй DĂũŽƌĂŝƌůŝŶĞƐŝŶƐŝĂͬWĂĐŝĨŝĐĐŽŶƚŝŶƵĞĚƚŽŐƌŽǁƐŝŐŶŝĨŝĐĂŶƚůǇ͕ǁŝƚŚŚŝŶĂ^ŽƵƚŚĞƌŶ͕ŝƌŚŝŶĂĂŶĚ ŚŝŶĂĂƐƚĞƌŶƌĞĐŽƌĚŝŶŐƚŚĞĨĂƐƚĞƐƚŐƌŽǁƚŚďǇнϭϮ͘ϳй͕нϭϭ͘ϲй͕ĂŶĚнϭϬ͘ϱй͕ƌĞƐƉĞĐƚŝǀĞůǇ͘dŚŝƐǁĂƐ ;^ŽƵƌĐĞ͗/K͕ĂŝƌůŝŶĞƐΖǁĞďƐŝƚĞƐͿ ĨŽůůŽǁĞĚďǇ^ŝŶŐĂƉŽƌĞŝƌůŝŶĞƐ'ƌŽƵƉǁŝƚŚĂŐƌŽǁƚŚŽĨнϵ͘ϲй͕ĂŶĚƌĂŶŬĞĚϭϱƚŚ͘ EŽƚĞ͗dŽƚĂůƐĐŚĞĚƵůĞĚĂŶĚŶŽŶͲƐĐŚĞĚƵůĞĚƐĞƌǀŝĐĞƐ

CAPACITY BY REGION (ICAO Statistical Regions) tŽƌůĚǁŝĚĞĐĂƉĂĐŝƚǇĞǆƉĂŶĚĞĚďǇ нϱ͘ϵйzŽzŝŶDĂǇϮϬϭϴ͘ůůƌĞŐŝŽŶƐ MAY 2018: +5.9% YoY in terms of World ASK ƉŽƐƚĞĚĐĂƉĂĐŝƚǇŝŶĐƌĞĂƐĞ͕ǁŝƚŚƚŚĞ й^ŚĂƌĞŽĨĂƉĂĐŝƚǇďǇZĞŐŝŽŶ нϱ͘ϬйzŽz ĞǆĐĞƉƚŝŽŶŽĨĨƌŝĐĂǁŚŝĐŚĞǆƉĞƌŝĞŶĐĞĚ нϱ͘ϭйzd Ϯ͘ϰй нϰ͘ϵйzŽz ĂĚĞĐůŝŶĞŽĨͲϬ͘ϵй͘ƐŝĂͬWĂĐŝĨŝĐ ϱ͘Ϭй ƐŝĂͬWĂĐŝĨŝĐ нϰ͘ϲйzd ĐŽŶƚŝŶƵĞĚƚŽƌĞĐŽƌĚƚŚĞĨĂƐƚĞƐƚ ƵƌŽƉĞ ĐĂƉĂĐŝƚǇĞǆƉĂŶƐŝŽŶ͕ĂůďĞŝƚǁŝƚŚĂ ϭϬ͘ϳй нϴ͘ϲйzŽz нϴ͘ϲйzd ϯϮ͘Ϭй EŽƌƚŚŵĞƌŝĐĂ ƐůŝŐŚƚůǇƐůŽǁĞƌƉĂĐĞĐŽŵƉĂƌĞĚƚŽƚŚĞ нϯ͘ϯйzŽz ƉƌĞǀŝŽƵƐŵŽŶƚŚ͘dŚĞŽƚŚĞƌƌĞŐŝŽŶƐ Ϯϯ͘ϭй DŝĚĚůĞĂƐƚ ͲϬ͘ϵйzŽz нϯ͘ϴйzd ĂĐĐĞůĞƌĂƚĞĚŝŶĐĂƉĂĐŝƚǇŐƌŽǁƚŚ͕ĂŶĚ Ϯϲ͘ϵй нϲ͘ϮйzŽz нϭ͘Ϯйzd >ĂƚŝŶŵĞƌŝĐĂͬĂƌŝďďĞĂŶ нϲ͘ϭйzd ƚŚĞƐĞĐŽŶĚĨĂƐƚĞƐƚŐƌŽǁŝŶŐƌĞŐŝŽŶǁĂƐ tŽƌůĚ͗ ĨƌŝĐĂ >ĂƚŝŶŵĞƌŝĐĂͬĂƌŝďďĞĂŶ͕ĨŽůůŽǁĞĚďǇ нϱ͘ϵйzŽz ;^ŽƵƌĐĞ͗/K͕/d͕K'Ϳ нϲ͘Ϭйzd ƵƌŽƉĞ͕EŽƌƚŚŵĞƌŝĐĂĂŶĚƚŚĞ EŽƚĞ͗dŽƚĂůƐĐŚĞĚƵůĞĚƐĞƌǀŝĐĞƐ DŝĚĚůĞĂƐƚ͘

* Embarked Passengers ** Loaded and Unloaded Freight inTonnes 1. ICAO estimates 2. Lufthansa Airlines, Eurowings, SWISS, Austrian Airlines, Brussels Airlines, Sun Express, and Lufthansa Cargo 3. British Airways, Iberia, and Vueling

ZKEzD^͗/͗ŝƌƉŽƌƚƐŽƵŶĐŝů/ŶƚĞƌŶĂƚŝŽŶĂů͖^<͗ǀĂŝůĂďůĞ^ĞĂƚͲ<ŝůŽŵĞƚƌĞƐ͖/d͗/ŶƚĞƌŶĂƚŝŽŶĂůŝƌdƌĂŶƐƉŽƌƚƐƐŽĐŝĂƚŝŽŶ͖&d<͗&ƌĞŝŐŚƚdŽŶŶĞͲ<ŝůŽŵĞƚƌĞƐ͖>&͗WĂƐƐĞŶŐĞƌ>ŽĂĚ&ĂĐƚŽƌ͖ K'͗KĨĨŝĐŝĂůŝƌůŝŶĞ'ƵŝĚĞ͖ZW<͗ZĞǀĞŶƵĞWĂƐƐĞŶŐĞƌͲ<ŝůŽŵĞƚƌĞƐ͖hEtdK͗tŽƌůĚdŽƵƌŝƐŵKƌŐĂŶŝǌĂƚŝŽŶ͖zŽz͗zĞĂƌͲŽŶͲǇĞĂƌ͖zd͗zĞĂƌͲƚŽͲĚĂƚĞ͘

49 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018 statistics

economic development AUG 2018: Air Transport Monthly Monitor World Results and Analyses AUGfor MAR 2018: 2018. Air Transport Total scheduled Monthly services Monitor (Domestic and international) World Results and Analyses for JUN 2018. Total scheduled services (domestic and international). Air Transport Bureau ŚƚƚƉ͗ͬͬǁǁǁ͘ŝĐĂŽ͘ŝŶƚͬƐƵƐƚĂŝŶĂďŝůŝƚǇͬWĂŐĞƐͬŝƌ>&ϮϬϭϰͲϮϬϭϱ>&ϮϬϭϯͲϮϬϭϰ ͲdƌĂĨĨŝĐͲDŽŶŝƚŽƌ͘ĂƐƉǆ E-mail: [email protected] GLOBAL KEY FIGURES JUN 2018 OUTLOOK* - JUL 2018 JUN JUL ; (versus JUN 2017) (versus JUL 2017) ZW< +7.8% ^< +6.5% &d< +2.7% >&͗82.8% +0.9 pt ^< +6.0% Ύ^ŽƵƌĐĞK'

PASSENGER TRAFFIC CAPACITY ZĞǀĞŶƵĞWĂƐƐĞŶŐĞƌͲ<ŝůŽŵĞƚƌĞƐͲZW< ǀĂŝůĂďůĞ^ĞĂƚͲ<ŝůŽŵĞƚƌĞƐͲ^< tŽƌůĚƉĂƐƐĞŶŐĞƌƚƌĂĨĨŝĐŐƌĞǁďǇнϳ͘ϴйzŽzŝŶ:ƵŶĞϮϬϭϴ͕нϭ͘ϳƉĞƌĐĞŶƚĂŐĞƉŽŝŶƚƐƵƉ ĂƉĂĐŝƚǇǁŽƌůĚǁŝĚĞŝŶĐƌĞĂƐĞĚďǇнϲ͘ϬйzŽzŝŶ:ƵŶĞϮϬϭϴ͕ͲϬ͘ϱƉĞƌĐĞŶƚĂŐĞ ĨƌŽŵƚŚĞŐƌŽǁƚŚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ͘dŚĞzdŐƌŽǁƚŚŽĨƚŚĞĨŝƌƐƚŚĂůĨŽĨƚŚĞǇĞĂƌ ƉŽŝŶƚůŽǁĞƌƚŚĂŶƚŚĞŐƌŽǁƚŚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ;нϲ͘ϱйͿ͘ ƌĞŵĂŝŶĞĚƐŽůŝĚĂůďĞŝƚǁŝƚŚƐůŝŐŚƚŵŽĚĞƌĂƚŝŽŶĐŽŵƉĂƌĞĚƚŽůĂƐƚǇĞĂƌ͕ŵĂŝŶůǇĚƵĞƚŽƚŚĞ ĐĐŽƌĚŝŶŐƚŽƚŚĞĂŝƌůŝŶĞƐĐŚĞĚƵůĞƐ͕ƚŚĞĞǆƉĂŶƐŝŽŶŽĨĐĂƉĂĐŝƚǇŝƐĞǆƉĞĐƚĞĚƚŽďĞĂƚ ŝŶĐƌĞĂƐĞŽĨŽŝůƉƌŝĐĞ͘&ŽƵƌƌĞŐŝŽŶƐ͕ĨƌŝĐĂ͕ƐŝĂͬWĂĐŝĨŝĐ͕ƚŚĞDŝĚĚůĞĂƐƚĂŶĚEŽƌƚŚ нϲ͘ϬйŝŶ:ƵůǇϮϬϭϴ͘ ŵĞƌŝĐĂ͕ĂĐĐĞůĞƌĂƚĞĚŝŶƚƌĂĨĨŝĐŐƌŽǁƚŚ͕ǁŝƚŚƚŚĞŵŽƐƚƐŝŐŶŝĨŝĐĂŶƚŝŵƉƌŽǀĞŵĞŶƚ ŽďƐĞƌǀĞĚŝŶƚŚĞDŝĚĚůĞĂƐƚ͘ŽŵĞƐƚŝĐƚƌĂĨĨŝĐĚĞŵĂŶĚŝŶ/ŶĚŝĂĂŶĚŚŝŶĂĐŽŶƚŝŶƵĞĚƚŽ ďĞƐƚƌŽŶŐ͕ĂŶĚďŽƚŚŐƌĞǁĚŽƵďůĞͲĚŝŐŝƚĂůůǇ͘ ϴϬϬ ϭϬй ϵϬϬ ϴй ZW< ZW

;ďŝůůŝŽŶͿ ϱ͘ϯй ;ďŝůůŝŽŶͿ ϰϬϬ ϱ͘ϳй ϱ͘ϯй ϰϬϬ ϯϬϬ ϰ͘ϲй ϰй ^<

ϯϬϬ ϰй ZW< ϮϬϬ ϮϬϬ Ϯй ϭϬϬ ϭϬϬ Ϭ Ϭй Ϭ Ϯй :ƵůͲϭϳ :ƵůͲϭϴ :ĂŶͲϭϴ :ƵŶͲϭϴ KĐƚͲϭϳ ƉƌͲϭϴ ^ĞƉͲϭϳ &ĞďͲϭϴ :ƵůͲϭϳ ĞĐͲϭϳ ƵŐͲϭϳ EŽǀͲϭϳ DĂƌͲϭϴ :ĂŶͲϭϴ DĂǇͲϭϴ :ƵŶͲϭϴ KĐƚͲϭϳ ƉƌͲϭϴ &ĞďͲϭϴ ^ĞƉͲϭϳ ĞĐͲϭϳ ƵŐͲϭϳ EŽǀͲϭϳ DĂƌͲϭϴ DĂǇͲϭϴ ;^ŽƵƌĐĞ͗/K͕/d͕K'Ϳ ;^ŽƵƌĐĞ͗/K͕/d͕K'Ϳ /ŶƚĞƌŶĂƚŝŽŶĂůdƌĂĨĨŝĐǀƐ͘dŽƵƌŝƐƚƌƌŝǀĂůƐ >ŽĂĚ&ĂĐƚŽƌͲ>&

/ŶƚĞƌŶĂƚŝŽŶĂůƉĂƐƐĞŶŐĞƌƚƌĂĨĨŝĐŐƌĞǁďǇнϳ͘ϳйzŽzŝŶ:ƵŶĞϮϬϭϴ͕нϭ͘ϵƉĞƌĐĞŶƚĂŐĞ dŚĞƉĂƐƐĞŶŐĞƌ>ŽĂĚ&ĂĐƚŽƌƌĞĂĐŚĞĚϴϮ͘ϴйŝŶ:ƵŶĞϮϬϭϴ͕нϮ͘ϳƉĞƌĐĞŶƚĂŐĞ ƉŽŝŶƚƐŚŝŐŚĞƌĨƌŽŵƚŚĞŐƌŽǁƚŚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ͘^ŝŵŝůĂƌƚŽƚŽƚĂůƉĂƐƐĞŶŐĞƌ ƉŽŝŶƚƐŚŝŐŚĞƌƚŚĂŶƚŚĞ>&ƌĞĐŽƌĚĞĚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ͘ ƚƌĂĨĨŝĐ͕ƚŚĞĨŽƵƌƌĞŐŝŽŶƐĂĐĐĞůĞƌĂƚĞĚŝŶŐƌŽǁƚŚ͘ĨƌŝĐĂĂŶĚƚŚĞDŝĚĚůĞĂƐƚďĞĐĂŵĞƚŚĞ ƐƚƌĂĨĨŝĐŐƌŽǁƚŚŽƵƚƉĂĐĞĚƚŚĞĐĂƉĂĐŝƚǇĞǆƉĂŶƐŝŽŶ͕ƚŚĞ:ƵŶĞ>&ǁĂƐнϬ͘ϵ ĨĂƐƚĞƐƚŐƌŽǁŝŶŐƌĞŐŝŽŶƐĂŶĚďŽƚŚŐƌĞǁĚŽƵďůĞͲĚŝŐŝƚĂůůǇ͘ ƉĞƌĐĞŶƚĂŐĞƉŽŝŶƚƐŚŝŐŚĞƌƚŚĂŶƚŚĞƌĂƚĞŝŶƚŚĞƐĂŵĞƉĞƌŝŽĚŝŶϮϬϭϳ͘ dŚĞŐƌŽǁƚŚŽĨŝŶƚĞƌŶĂƚŝŽŶĂůƚŽƵƌŝƐƚĂƌƌŝǀĂůƐΎĨŽůůŽǁĞĚĂƐŝŵŝůĂƌŵŽŶƚŚůǇƚƌĞŶĚ͘

ϭϲй ŝŶƚĞƌŶĂƚŝŽŶĂůZW< ϴϳй >&ϮϬϭϳͲϮϬϭϴ ŝŶƚĞƌŶĂƚŝŽŶĂůƚŽƵƌŝƐƚĂƌƌŝǀĂůƐΎ ϴϰ͘ϳй >&ϮϬϭϲͲϮϬϭϳ ϭϰй ϴϱй ϴϰ͘ϱй ϭϮй ϭϬ͘ϲй ϴϮ͘ϴй ϴϮ͘ϰй ϴϮ͘ϯй ϴϯй ϴϭ͘ϲй ϭϬй ϴ͘ϭй ϳ͘ϰй ϳ͘ϵй ϳ͘ϯй ϳ͘ϳй ϴϬ͘ϴй ϴϬ͘ϳй ϴй ϲ͘ϳй ϳ͘Ϯй ϴϭй ϴϬ͘Ϯй ϴϬ͘ϰй ϴϭ͘ϵй ϲ͘Ϭй ϵ͘Ϭй ϱ͘ϴй >& ϱ͘ϭй ϲй ϳ͘Ϭй ϲ͘ϱй ϰ͘ϴй ϴϬ͘ϭй ϲ͘Ϯй ϲ͘ϱй ϲ͘Ϯй ϳϵй ϳϵ͘ϲй zŽzŐƌŽǁƚŚ ϰй ϱ͘ϳй ϱ͘Ϯй ϰ͘ϰй ϰ͘ϱй Ϯй ϳϳй Ϭй ϳϱй :Ƶů :ĂŶ :ƵŶ KĐƚ Ɖƌ ^ĞƉ &Ğď ĞĐ ƵŐ EŽǀ DĂƌ DĂǇ :ƵůͲϭϳ :ĂŶͲϭϴ :ƵŶͲϭϴ KĐƚͲϭϳ ƉƌͲϭϴ ^ĞƉͲϭϳ &ĞďͲϭϴ ĞĐͲϭϳ ƵŐͲϭϳ EŽǀͲϭϳ DĂƌͲϭϴ DĂǇͲϭϴ

ΎhEtdKĞĨŝŶŝƚŝŽŶ ;^ŽƵƌĐĞ͗/d͕hEtdKͿ ;^ŽƵƌĐĞ͗/dͿ

FREIGHT TRAFFIC ϭϲй &d< &ƌĞŝŐŚƚdŽŶŶĞͲ<ŝůŽŵĞƚƌĞƐͲ&d< ϭϮ͘ϭй ϭϭ͘ϰй ϭϮй Ͳϭ͘ϱƉĞƌĐĞŶƚĂŐĞƉŽŝŶƚƐůŽǁĞƌ tŽƌůĚĨƌĞŝŐŚƚƚƌĂĨĨŝĐŐƌĞǁďǇнϮ͘ϳйzŽzŝŶ:ƵŶĞϮϬϭϴ͕ ϵ͘Ϯй ϴ͘ϴй ƚŚĂŶƚŚĞŐƌŽǁƚŚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ͘dƌĂĨĨŝĐŐƌŽǁƚŚŵŽĚĞƌĂƚĞĚƉĂƌƚŝĂůůǇ ϴй ϴ͘Ϭй ŝŵƉĂĐƚĞĚďǇƚŚĞƚĞŵƉŽƌĂƌǇĨůŝŐŚƚƐƵƐƉĞŶƐŝŽŶŽĨEŝƉƉŽŶĂƌŐŽŝƌůŝŶĞƐ͘dŚĞŽǀĞƌĂůů ϲ͘ϴй ŐƌŽǁƚŚŽĨĨƌĞŝŐŚƚƚƌĂĨĨŝĐŝŶƚŚĞĨŝƌƐƚƐŝǆŵŽŶƚŚƐƐůŽǁĞĚĚŽǁŶĐŽŵƉĂƌĞĚƚŽůĂƐƚǇĞĂƌ͘ ϱ͘ϵй ϱ͘ϳй ϰ͘ϭй ϰ͘Ϯй zŽzŐƌŽǁƚŚ ϰй ůůƌĞŐŝŽŶƐ͕ĞǆĐĞƉƚĨŽƌƵƌŽƉĞĂŶĚƚŚĞDŝĚĚůĞĂƐƚ͕ƉŽƐƚĞĚĂĚĞĐĞůĞƌĂƚŝŽŶŝŶ Ϯ͘ϳй ŐƌŽǁƚŚ͘ĨƌŝĐĂĞǆƉĞƌŝĞŶĐĞĚƚŚĞŵŽƐƚƐŝŐŶŝĨŝĐĂŶƚƐůŽǁĚŽǁŶĂŶĚĐŽŶƚŝŶƵĞĚƚŽďĞƚŚĞ Ϭй ϭ͘ϳй ŽŶůǇƌĞŐŝŽŶǁŝƚŚŶĞŐĂƚŝǀĞŐƌŽǁƚŚ͘ƐŝĂͬWĂĐŝĨŝĐ͕ƚŚĞůĂƌŐĞƐƚƌĞŐŝŽŶŽĨĨƌĞŝŐŚƚƚƌĂĨĨŝĐ͕

ƉŽƐƚĞĚĂĚĂŵƉĞŶĞĚŐƌŽǁƚŚ͕ŝŵƉĂĐƚĞĚďǇƚŚĞƌŝƐŝŶŐƚƌĂĚĞƚĞŶƐŝŽŶ͘>ĂƚŝŶ :ƵůͲϭϳ :ĂŶͲϭϴ :ƵŶͲϭϴ KĐƚͲϭϳ ƉƌͲϭϴ &ĞďͲϭϴ ^ĞƉͲϭϳ ĞĐͲϭϳ ƵŐͲϭϳ EŽǀͲϭϳ DĂƌͲϭϴ ŵĞƌŝĐĂͬĂƌŝďďĞĂŶĐŽŶƚŝŶƵĞĚƚŽďĞƚŚĞĨĂƐƚĞƐƚŐƌŽǁŝŶŐƌĞŐŝŽŶĂůďĞŝƚƐŚŽǁŝŶŐĂ DĂǇͲϭϴ ŵĂũŽƌƐůŽǁĚŽǁŶ͘ ;^ŽƵƌĐĞ͗/dͿ

50 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018 statistics

▶ CONTINUED FROM PAGE 50 economic development AUG 2018: Air TransportAUG 2018: Air M Transportonthly Monthly Monitor Monitor World Results and AnalysesWorld Results for and MAR Analyses for2018. JUN 2018. Total scheduled scheduled services (domestic and services international). Air Transport Bureau (Domestic and international) E-mail: [email protected] TOP 15 AIRPORTS (Ranked by aircraft departures, passengers and volume of freight) JUN 2018: +2.3%, +6.3%, and -0.2% YoY in terms of aircraft departures, passengers and freight for the Top 15 :hEϭϴ

ŝƌƉŽƌƚƐ ĞƉĂƌƚƵƌĞƐ zŽz ŝƌƉŽƌƚƐ WĂƐƐĞŶŐĞƌƐΎ zŽz ŝƌƉŽƌƚƐ &ƌĞŝŐŚƚΎΎ zŽz ;ƌĂŶŬŝŶŐďǇŶƵŵďĞƌŽĨĚĞƉĂƌƚƵƌĞƐͿ ;ƌĂŶŬŝŶŐďǇŶƵŵďĞƌŽĨƉĂƐƐĞŶŐĞƌƐͿ ;ƌĂŶŬŝŶŐďǇƚŽŶŶĞƐŽĨĨƌĞŝŐŚƚͿ ŚŝĐĂŐŽ/>͕h^;KZͿ ϯϵ͕ϭϴϱ ϯ͘ϳй ƚůĂŶƚĂ'͕h^;d>Ϳ ϰ͕ϳϳϵ͕ϲϳϴ ϭ͘ϱй ,ŽŶŐ<ŽŶŐ͕E;,<'Ϳ ϰϭϲ͕ϬϬϬ ϭ͘ϰй ƚůĂŶƚĂ'͕h^;d>Ϳ ϯϴ͕ϴϱϲ Ϭ͘ϰй ĞŝũŝŶŐ͕E;W<Ϳ ϰ͕Ϭϴϴ͕ϳϭϳ ϳ͘ϭй DĞŵƉŚŝƐdE͕h^;DDͿ ϯϳϱ͕ϵϲϬ Ϯ͘ϳй >ŽƐŶŐĞůĞƐ͕h^;>yͿ ϯϬ͕ϱϳϯ ϭ͘ϱй >ŽƐŶŐĞůĞƐ͕h^;>yͿ ϰ͕ϬϬϲ͕ϯϰϳ ϯ͘ϳй ^ŚĂŶŐŚĂŝ͕E;Ws'Ϳ ϯϬϲ͕ϲϲϳ ͲϮ͘ϯй ĂůůĂƐͬ&ŽƌƚtŽƌƚŚdy͕h^;&tͿ Ϯϵ͕ϯϲϴ ϰ͘ϴй ŚŝĐĂŐŽ/>͕h^;KZͿ ϯ͕ϴϲϬ͕ϭϱϭ ϰ͘ϲй /ŶĐŚĞŽŶ͕ŽŶĚŽŶ͕';>,ZͿ ϯ͕ϱϲϯ͕ϱϯϰ ϱ͘ϰй ŶĐŚŽƌĂŐĞ<͕h^;EͿ Ϯϯϭ͕ϴϵϬ ͲϮ͘ϱй ĞŝũŝŶŐ͕E;W<Ϳ Ϯϰ͕ϴϵϵ ϯ͘Ϯй ƵďĂŝ͕;yͿ ϯ͕ϯϵϳ͕ϳϰϲ ϭϭ͘ϳй ƵďĂŝ͕;yͿ Ϯϭϰ͕ϲϭϮ ͲϬ͘ϱй ŵƐƚĞƌĚĂŵ͕E>;D^Ϳ ϮϮ͕ϲϯϵ ͲϬ͘ϴй dŽŬǇŽ͕:W;,EͿ ϯ͕ϯϯϱ͕Ϭϵϰ ͲϬ͘ϳй >ŽƵŝƐǀŝůůĞdͿ ϮϮ͕ϱϮϬ Ͳϱ͘ϱй ĂůůĂƐͬ&ŽƌƚtŽƌƚŚdy͕h^;&tͿ ϯ͕Ϯϯϯ͕ϰϵϲ ϳ͘Ϯй >ŽƐŶŐĞůĞƐ͕h^;>yͿ ϭϴϬ͕ϳϯϳ ͲϬ͘ϲй WĂƌŝƐ͕&Z;'Ϳ Ϯϭ͕ϯϰϵ ϭ͘ϲй ŵƐƚĞƌĚĂŵ͕E>;D^Ϳ ϯ͕ϭϵϮ͕ϴϲϵ ϯ͘ϴй dŽŬǇŽ͕:W;EZdͿ ϭϴϬ͕ϳϮϳ Ͳϲ͘ϰй ^ŚĂŶŐŚĂŝ͕E;Ws'Ϳ ϮϬ͕ϴϲϰ ϯ͘ϳй &ƌĂŶŬĨƵƌƚ͕;&ZͿ ϯ͕ϭϴϮ͕ϴϳϳ ϵ͘ϴй ŽŚĂ͕Y;K,Ϳ ϭϳϴ͕ϯϵϯ ϰ͘ϰй dŽƌŽŶƚŽKE͕;zzͿ ϮϬ͕ϳϬϳ Ϯ͘ϭй ^ŚĂŶŐŚĂŝ͕E;Ws'Ϳ ϯ͕ϭϮϬ͕Ϯϴϵ ϭϬ͘ϯй &ƌĂŶŬĨƵƌƚ͕;&ZͿ ϭϳϯ͕ϱϳϯ ͲϮ͘ϴй ^ĂŶ&ƌĂŶĐŝƐĐŽ͕h^;^&KͿ ϮϬ͕ϱϭϴ Ϯ͘ϱй ,ŽŶŐ<ŽŶŐ͕E;,<'Ϳ ϯ͕Ϭϵϳ͕ϱϬϬ ϱ͘ϯй ĞŝũŝŶŐ͕E;W<Ϳ ϭϳϬ͕ϳϴϰ Ϯ͘ϭй >ŽŶĚŽŶ͕';>,ZͿ ϮϬ͕Ϯϱϳ ͲϬ͘ϯй ĞŶǀĞƌK͕h^;EͿ Ϯ͕ϵϱϮ͕ϱϭϱ ϰ͘ϱй ^ŝŶŐĂƉŽƌĞ͕^';^/EͿ ϭϳϬ͕ϱϬϬ ͲϬ͘ϵй :ĂŬĂƌƚĂ͕/;'<Ϳ ϮϬ͕ϭϵϲ ϱ͘ϵй :ĂŬĂƌƚĂ͕/;'<Ϳ Ϯ͕ϵϯϲ͕ϲϰϲ ϮϮ͘ϲй WĂƌŝƐ͕&Z;'Ϳ ϭϲϱ͕ϱϱϯ Ͳϭ͘Ϭй

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TOP 15 AIRLINE GROUPS (Ranked by RPK) :hEϭϴ ZW<;ďŝůůŝŽŶͿ й^ŚĂƌĞ ƵŵƵůĂƚŝǀĞ JUN 2018: +7.2% YoY in terms of RPK for the Top 15 zŽz ŽĨtŽƌůĚ Ͳ ϱ ϭϬ ϭϱ ϮϬ Ϯϱ ϯϬ ϯϱ ϰϬ й^ŚĂƌĞ dŽƚĂů /ŶƚĞƌŵƐŽĨZW<͕ƚŚĞdŽƉϭϱĂŝƌůŝŶĞŐƌŽƵƉƐĂĐĐŽƵŶƚĞĚĨŽƌϰϴ͘ϮйŽĨǁŽƌůĚƚŽƚĂůZW<ŝŶ:ƵŶĞϮϬϭϴ͕ hŶŝƚĞĚ ϯϱ͘Ϭ ϳ͘Ϯй ϱ͘ϭй ϱ͘ϭй ĂŶĚŐƌĞǁďǇнϳ͘ϮйzŽz͘dŚŝƐŐƌŽǁƚŚǁĂƐͲϬ͘ϲƉĞƌĐĞŶƚĂŐĞƉŽŝŶƚůŽǁĞƌƚŚĂŶƚŚĞǁŽƌůĚĂǀĞƌĂŐĞŽŶ ĞůƚĂ ϯϰ͘ϱ ϯ͘Ϭй ϱ͘Ϭй ϭϬ͘Ϯй ŵĞƌŝĐĂŶ1 ϯϰ͘ϰ ϭ͘ϲй ϱ͘Ϭй ϭϱ͘Ϯй ƐĐŚĞĚƵůĞĚƐĞƌǀŝĐĞƐ͘ůůƚŚĞdŽƉϭϱĂŝƌůŝŶĞŐƌŽƵƉƐƉŽƐƚĞĚzŽzŝŶĐƌĞĂƐĞƐ͘ 2 >ƵĨƚŚĂŶƐĂ'ƌŽƵƉ Ϯϲ͘ϭ ϵ͘ϯй ϯ͘ϴй ϭϵ͘Ϭй tŝƚŚĂƐƚƌŽŶŐŐƌŽǁƚŚŽĨнϳ͘Ϯй͕hŶŝƚĞĚƌĂŶŬĞĚϭƐƚĨŽƌƚŚĞĨŝƌƐƚƚŝŵĞŽĨƚŚĞǇĞĂƌ͘ĞůƚĂƌĞŵĂŝŶĞĚĂƚ &Ͳ<>D Ϯϱ͘ϭ ϰ͘ϰй ϯ͘ϳй ϮϮ͘ϳй 3 /' Ϯϱ͘Ϭ ϵ͘ϭй ϯ͘ϲй Ϯϲ͘ϯй ϮŶĚĂŶĚŐƌĞǁŵŽĚĞƌĂƚĞůǇďǇнϯ͘Ϭй͘ŵĞƌŝĐĂŶ͕ĐŽŶƚŝŶƵĞĚƚŽƉŽƐƚƚŚĞƐůŽǁĞƐƚŐƌŽǁƚŚĂŵŽŶŐƚŚĞdŽƉ 1 ŵŝƌĂƚĞƐ ϮϮ͘Ϯ ϴ͘Ϭй ϯ͘Ϯй Ϯϵ͘ϲй ϯĂŝƌůŝŶĞƐĂŶĚƌĂŶŬĞĚϮƉŽƐŝƚŝŽŶƐĚŽǁŶƚŽϯƌĚ͘^ŽƵƚŚǁĞƐƚƌĞŵĂŝŶĞĚĂƚϵƚŚǁŝƚŚĂŶŝŶĐƌĞĂƐĞŽĨнϮ͘ϲй ŚŝŶĂ^ŽƵƚŚĞƌŶ ϮϬ͘ϱ ϭϮ͘ϱй ϯ͘Ϭй ϯϮ͘ϲй zŽz͘ŝƌĂŶĂĚĂĐŽŶƚŝŶƵĞĚƚŽƌĞĐŽƌĚƚŚĞƐƚƌŽŶŐĞƐƚŐƌŽǁƚŚǁŝƚŚŝŶƚŚĞEŽƌƚŚŵĞƌŝĐĂŶĂŝƌůŝŶĞƐŝŶƚŚĞ ^ŽƵƚŚǁĞƐƚ ϭϵ͘ϳ Ϯ͘ϲй Ϯ͘ϵй ϯϱ͘ϰй dŽƉϭϱ͕ĂŶĚŝŵƉƌŽǀĞĚϭƉŽƐŝƚŝŽŶƚŽϭϯƚŚ͘ ŝƌŚŝŶĂ ϭϴ͘Ϭ ϭϯ͘ϯй Ϯ͘ϲй ϯϴ͘ϭй ŚŝŶĂĂƐƚĞƌŶ ϭϲ͘ϰ ϭϯ͘ϳй Ϯ͘ϰй ϰϬ͘ϱй 1 ŵŝƌĂƚĞƐƉŽƐƚĞĚĂƌĞĐŽǀĞƌǇĨƌŽŵƚŚĞǁĞĂŬŐƌŽǁƚŚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚƐĂŶĚŐƌĞǁďǇнϴ͘ϬйǁŚŝůĞ ZǇĂŶĂŝƌ ϭϰ͘ϴ ϲ͘ϴй Ϯ͘Ϯй ϰϮ͘ϲй ŝƌĂŶĂĚĂ1 ϭϯ͘ϲ ƌĞŵĂŝŶĞĚĂƚϳƚŚ͘YĂƚĂƌƌĞĐŽƌĚĞĚƚŚĞƐƚƌŽŶŐĞƐƚŐƌŽǁƚŚĂŵŽŶŐƚŚĞdŽƉϭϱĂŶĚŐƌĞǁďǇнϭϰ͘ϭй͘ ϴ͘ϲй Ϯ͘Ϭй ϰϰ͘ϲй dƵƌŬŝƐŚŝƌůŝŶĞƐ ϭϮ͘ϱ ϴ͘ϳй ϭ͘ϴй ϰϲ͘ϱй YĂƚĂƌŝƌǁĂǇƐ ϭϭ͘ϵ dŚƌĞĞƵƌŽƉĞĂŶĂŝƌůŝŶĞŐƌŽƵƉƐ͕>ƵĨƚŚĂŶƐĂ͕&Ͳ<>D͕ĂŶĚ/'ƌĞŵĂŝŶĞĚĂƚϰƚŚ͕ϱƚŚ͕ĂŶĚϲƚŚ͕ ϭϰ͘ϭй ϭ͘ϳй ϰϴ͘Ϯй ƌĞƐƉĞĐƚŝǀĞůǇ͕ĂŶĚďŽƚŚ>ƵĨƚŚĂŶƐĂĂŶĚ/'ŐƌĞǁƐƚƌŽŶŐůǇĂƚĂďŽǀĞнϵ͘Ϭй͘dƵƌŬŝƐŚŝƌůŝŶĞƐĚƌŽƉƉĞĚϭ dŽƉϭϱdŽƚĂůZW<Ɛ ϯϯϬ ďŝůůŝŽŶ ϳ͘Ϯй ϰϴ͘Ϯй ƉŽƐŝƚŝŽŶƚŽϭϰƚŚǁŝƚŚĂŐƌŽǁƚŚŽĨнϴ͘ϳй͘ tŽƌůĚdŽƚĂůZW<Ɛ ϲϴϰ ďŝůůŝŽŶ ϳ͘ϴй ϭϬϬ͘Ϭй DĂũŽƌĂŝƌůŝŶĞƐŝŶƐŝĂͬWĂĐŝĨŝĐĐŽŶƚŝŶƵĞĚƚŽŐƌŽǁƌŽďƵƐƚůǇ͕ǁŝƚŚŚŝŶĂ^ŽƵƚŚĞƌŶ͕ŝƌŚŝŶĂĂŶĚŚŝŶĂ ;^ŽƵƌĐĞ͗/K͕ĂŝƌůŝŶĞƐΖǁĞďƐŝƚĞƐͿ ĂƐƚĞƌŶƌĞĐŽƌĚŝŶŐƚŚĞĨĂƐƚĞƐƚŐƌŽǁƚŚĂĨƚĞƌYĂƚĂƌ͕ĂŶĚƌĂŶŬĞĚϴƚŚ͕ϭϬƚŚ͕ĂŶĚϭϭƚŚ͕ƌĞƐƉĞĐƚŝǀĞůǇ͘ EŽƚĞ͗dŽƚĂůƐĐŚĞĚƵůĞĚĂŶĚŶŽŶͲƐĐŚĞĚƵůĞĚƐĞƌǀŝĐĞƐ

CAPACITY BY REGION (ICAO Statistical Regions) tŽƌůĚǁŝĚĞĐĂƉĂĐŝƚǇĞǆƉĂŶĚĞĚďǇ нϲ͘ϱйzŽzŝŶ:ƵŶĞϮϬϭϴǁŝƚŚĂůů JUN 2018: +6.5% YoY in terms of World ASK ƌĞŐŝŽŶƐƉŽƐƚŝŶŐĐĂƉĂĐŝƚǇŝŶĐƌĞĂƐĞ͘&ŽƵƌ й^ŚĂƌĞŽĨĂƉĂĐŝƚǇďǇZĞŐŝŽŶ нϰ͘ϱйzŽz ƌĞŐŝŽŶƐ͕ĨƌŝĐĂ͕ƐŝĂͬWĂĐŝĨŝĐ͕>ĂƚŝŶ нϱ͘Ϭйzd Ϯ͘ϱй нϰ͘ϯйzŽz ŵĞƌŝĐĂͬĂƌŝďďĞĂŶĂŶĚƚŚĞDŝĚĚůĞ ϰ͘ϴй ƐŝĂͬWĂĐŝĨŝĐ нϰ͘ϲйzd ĂƐƚ͕ĂĐĐĞůĞƌĂƚĞĚŝŶĐĂƉĂĐŝƚǇŐƌŽǁƚŚ͘ ƵƌŽƉĞ dŚĞDŝĚĚůĞĂƐƚƌĞĐŽƌĚĞĚƚŚĞŵŽƐƚ ϭϬ͘ϰй нϵ͘ϴйzŽz ϯϭ͘ϭй EŽƌƚŚŵĞƌŝĐĂ нϴ͘ϴйzd ƐŝŐŶŝĨŝĐĂŶƚŝŵƉƌŽǀĞŵĞŶƚŝŶĐĂƉĂĐŝƚǇ нϳ͘ϱйzŽz ĞǆƉĂŶƐŝŽŶĂŶĚǁĂƐƚŚĞƐĞĐŽŶĚĨĂƐƚĞƐƚ Ϯϯ͘ϳй DŝĚĚůĞĂƐƚ нϭ͘ϴйzŽz нϰ͘ϰйzd Ϯϳ͘ϱй нϲ͘ϱйzŽz нϭ͘ϭйzd ŐƌŽǁŝŶŐƌĞŐŝŽŶĂĨƚĞƌƐŝĂͬWĂĐŝĨŝĐ͘ >ĂƚŝŶŵĞƌŝĐĂͬĂƌŝďďĞĂŶ нϲ͘Ϯйzd ŽƚŚƵƌŽƉĞĂŶĚEŽƌƚŚŵĞƌŝĐĂ tŽƌůĚ͗ ĨƌŝĐĂ нϲ͘ϱйzŽz ĚĞĐĞůĞƌĂƚĞĚƐůŝŐŚƚůǇŝŶĐĂƉĂĐŝƚǇ ;^ŽƵƌĐĞ͗/K͕/d͕K'Ϳ нϲ͘ϭйzd ŝŶĐƌĞĂƐĞ͘ EŽƚĞ͗dŽƚĂůƐĐŚĞĚƵůĞĚƐĞƌǀŝĐĞƐ

ZKEzD^͗/͗ŝƌƉŽƌƚƐŽƵŶĐŝů/ŶƚĞƌŶĂƚŝŽŶĂů͖^<͗ǀĂŝůĂďůĞ^ĞĂƚͲ<ŝůŽŵĞƚƌĞƐ͖/d͗/ŶƚĞƌŶĂƚŝŽŶĂůŝƌdƌĂŶƐƉŽƌƚƐƐŽĐŝĂƚŝŽŶ͖&d<͗&ƌĞŝŐŚƚdŽŶŶĞͲ<ŝůŽŵĞƚƌĞƐ͖>&͗WĂƐƐĞŶŐĞƌ>ŽĂĚ&ĂĐƚŽƌ͖ K'͗KĨĨŝĐŝĂůŝƌůŝŶĞ'ƵŝĚĞ͖ZW<͗ZĞǀĞŶƵĞWĂƐƐĞŶŐĞƌͲ<ŝůŽŵĞƚƌĞƐ͖hEtdK͗tŽƌůĚdŽƵƌŝƐŵKƌŐĂŶŝǌĂƚŝŽŶ͖zŽz͗zĞĂƌͲŽŶͲǇĞĂƌ͖zd͗zĞĂƌͲƚŽͲĚĂƚĞ͘

51 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018 statistics

economic development SEP 2018: Air Transport Monthly Monitor World Results and Analyses SEPfor APR 2018: 2018. Air Transport Total scheduled Monthly services Monitor (Domestic and international) World Results and Analyses for JUL 2018. Total scheduled services (domestic and international). Air Transport Bureau ŚƚƚƉ͗ͬͬǁǁǁ͘ŝĐĂŽ͘ŝŶƚͬƐƵƐƚĂŝŶĂďŝůŝƚǇͬWĂŐĞƐͬŝƌ>&ϮϬϭϰͲϮϬϭϱ>&ϮϬϭϯͲϮϬϭϰ ͲdƌĂĨĨŝĐͲDŽŶŝƚŽƌ͘ĂƐƉǆ E-mail: [email protected] GLOBAL KEY FIGURES JUL 2018 OUTLOOK* - AUG 2018 JUN JUL ; (versus JUL 2017) (versus AUG 2017) ZW< +6.2% ^< +5.5% &d< +2.1% >&͗85.2% +0.5 pt ^< +5.5% Ύ^ŽƵƌĐĞK'

PASSENGER TRAFFIC CAPACITY ZĞǀĞŶƵĞWĂƐƐĞŶŐĞƌͲ<ŝůŽŵĞƚƌĞƐͲZW< ǀĂŝůĂďůĞ^ĞĂƚͲ<ŝůŽŵĞƚƌĞƐͲ^< tŽƌůĚƉĂƐƐĞŶŐĞƌƚƌĂĨĨŝĐŐƌĞǁďǇнϲ͘ϮйzŽzŝŶ:ƵůǇϮϬϭϴ͕Ͳϭ͘ϲƉĞƌĐĞŶƚĂŐĞƉŽŝŶƚƐůŽǁĞƌ ĂƉĂĐŝƚǇǁŽƌůĚǁŝĚĞŝŶĐƌĞĂƐĞĚďǇнϱ͘ϱйzŽzŝŶ:ƵůǇϮϬϭϴ͕Ͳϭ͘ϬƉĞƌĐĞŶƚĂŐĞƉŽŝŶƚ ƚŚĂŶƚŚĞŐƌŽǁƚŚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ͘ůůƌĞŐŝŽŶƐĚĞĐĞůĞƌĂƚĞĚŝŶƚƌĂĨĨŝĐŐƌŽǁƚŚ ůŽǁĞƌƚŚĂŶƚŚĞŐƌŽǁƚŚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ;нϲ͘ϱйͿ͘ ĞǆĐĞƉƚĨŽƌ>ĂƚŝŶŵĞƌŝĐĂͬĂƌŝďďĞĂŶǁŝƚŚŶŽĐŚĂŶŐĞ͘dŚĞŵŽƐƚƐŝŐŶŝĨŝĐĂŶƚƐůŽǁĚŽǁŶ /ŶƌĞƐƉŽŶƐĞƚŽƚŚĞƉĂƐƐĞŶŐĞƌƚƌĂĨĨŝĐĚĞŵĂŶĚ͕ƚŚĞĞǆƉĂŶƐŝŽŶŽĨĐĂƉĂĐŝƚǇŝƐ ǁĂƐŽďƐĞƌǀĞĚŝŶƚŚĞDŝĚĚůĞĂƐƚǁŝƚŚŝƚƐŐƌŽǁƚŚďĞŝŶŐŵŽƌĞƚŚĂŶŚĂůǀĞĚĨƌŽŵƚŚĞ ĞǆƉĞĐƚĞĚƚŽďĞƌĞŵĂŝŶĂƚнϱ͘ϱйŝŶƵŐƵƐƚϮϬϭϴ͘ ŵŽŶƚŚďĞĨŽƌĞ͘ƐŝĂͬWĂĐŝĨŝĐĐŽŶƚŝŶƵĞĚƚŽďĞƚŚĞĨĂƐƚĞƐƚŐƌŽǁŝŶŐƌĞŐŝŽŶ͕ĐŽŵƉĞŶƐĂƚŝŶŐ ƚŚĞŵŽĚĞƌĂƚŝŽŶŝŶŽƚŚĞƌƌĞŐŝŽŶƐ͘ŽŵĞƐƚŝĐƚƌĂĨĨŝĐĚĞŵĂŶĚŝŶ/ŶĚŝĂĂŶĚŚŝŶĂ ĐŽŶƚŝŶƵĞĚƚŽďĞƐƚƌŽŶŐ͕ĂŶĚďŽƚŚŐƌĞǁĚŽƵďůĞͲĚŝŐŝƚĂůůǇ͘ ϴϬϬ ϭϬй ϵϬϬ ϴй ZW< ZW

ϱ͘ϳй ;ďŝůůŝŽŶͿ ϰϬϬ ϱ͘ϯй ϰϬϬ ϯϬϬ ϰ͘ϲй ϰй ^<

ϯϬϬ ϰй ZW< ϮϬϬ ϮϬϬ Ϯй ϭϬϬ ϭϬϬ Ϭ Ϭй Ϭ Ϯй :ƵůͲϭϴ :ĂŶͲϭϴ :ƵŶͲϭϴ KĐƚͲϭϳ ƉƌͲϭϴ ^ĞƉͲϭϳ &ĞďͲϭϴ :ƵůͲϭϴ ĞĐͲϭϳ ƵŐͲϭϴ ƵŐͲϭϳ EŽǀͲϭϳ DĂƌͲϭϴ :ĂŶͲϭϴ DĂǇͲϭϴ :ƵŶͲϭϴ KĐƚͲϭϳ ƉƌͲϭϴ ^ĞƉͲϭϳ &ĞďͲϭϴ ĞĐͲϭϳ ƵŐͲϭϳ EŽǀͲϭϳ DĂƌͲϭϴ DĂǇͲϭϴ ;^ŽƵƌĐĞ͗/K͕/d͕K'Ϳ ;^ŽƵƌĐĞ͗/K͕/d͕K'Ϳ /ŶƚĞƌŶĂƚŝŽŶĂůdƌĂĨĨŝĐǀƐ͘dŽƵƌŝƐƚƌƌŝǀĂůƐ >ŽĂĚ&ĂĐƚŽƌͲ>&

/ŶƚĞƌŶĂƚŝŽŶĂůƉĂƐƐĞŶŐĞƌƚƌĂĨĨŝĐŐƌĞǁďǇнϱ͘ϯйzŽzŝŶ:ƵůǇϮϬϭϴ͕ͲϮ͘ϰƉĞƌĐĞŶƚĂŐĞ dŚĞƉĂƐƐĞŶŐĞƌ>ŽĂĚ&ĂĐƚŽƌƌĞĂĐŚĞĚϴϱ͘ϮйŝŶ:ƵůǇϮϬϭϴ͕нϮ͘ϰƉĞƌĐĞŶƚĂŐĞ ƉŽŝŶƚƐůŽǁĞƌƚŚĂŶƚŚĞŐƌŽǁƚŚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ͘^ŝŵŝůĂƌƚŽƚŽƚĂůƉĂƐƐĞŶŐĞƌƚƌĂĨĨŝĐ͕ ƉŽŝŶƚƐŚŝŐŚĞƌƚŚĂŶƚŚĞ>&ƌĞĐŽƌĚĞĚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ͘ ĂůůƌĞŐŝŽŶƐƉŽƐƚĞĚĂƐůŽǁĚŽǁŶ͘dŚĞDŝĚĚůĞĂƐƚĞǆƉĞƌŝĞŶĐĞĚƚŚĞŵŽƐƚƐŝŐŶŝĨŝĐĂŶƚ ƐƚƌĂĨĨŝĐŐƌŽǁƚŚŽƵƚƉĂĐĞĚƚŚĞĐĂƉĂĐŝƚǇĞǆƉĂŶƐŝŽŶ͕ƚŚĞ:ƵůǇ>&ǁĂƐнϬ͘ϱ ĚĞĐĞůĞƌĂƚŝŽŶ͕ĨŽůůŽǁĞĚďǇĨƌŝĐĂ͘ ƉĞƌĐĞŶƚĂŐĞƉŽŝŶƚŚŝŐŚĞƌƚŚĂŶƚŚĞƌĂƚĞŝŶƚŚĞƐĂŵĞƉĞƌŝŽĚŝŶϮϬϭϳ͘ dŚĞŐƌŽǁƚŚŽĨŝŶƚĞƌŶĂƚŝŽŶĂůƚŽƵƌŝƐƚĂƌƌŝǀĂůƐΎŝƐĞǆƉĞĐƚĞĚƚŽĨŽůůŽǁĂƐŝŵŝůĂƌŵŽŶƚŚůǇ ƚƌĞŶĚ͘ ŝŶƚĞƌŶĂƚŝŽŶĂůZW< ϭϲй ϴϳй >&ϮϬϭϳͲϮϬϭϴ ŝŶƚĞƌŶĂƚŝŽŶĂůƚŽƵƌŝƐƚĂƌƌŝǀĂůƐΎ ϴϱ͘Ϯй ϭϰй ϴϱй ϴϰ͘ϱй >&ϮϬϭϲͲϮϬϭϳ ϭϮй ϭϬ͘ϲй ϴϰ͘ϳй ϴϮ͘ϰй ϴϮ͘ϯй ϴϮ͘ϴй ϭϬй ϴϯй ϴϭ͘ϲй ϴ͘ϭй ϳ͘ϰй ϳ͘ϵй ϳ͘ϯй ϳ͘ϳй ϴϬ͘ϴй ϴϬ͘ϳй ϴй ϳ͘Ϯй ϵ͘Ϭй ϴϭй ϴϬ͘Ϯй ϴϬ͘ϰй ϲ͘Ϭй ϱ͘ϴй >& ϲй ϳ͘Ϭй ϱ͘ϭй ϰ͘ϴй ϱ͘ϯй ϲ͘ϱй ϱ͘ϳй ϲ͘Ϯй ϲ͘ϱй ϳϵй ϴϬ͘ϭй zŽzŐƌŽǁƚŚ ϰй ϱ͘Ϯй ϳϵ͘ϲй ϰ͘ϰй ϰ͘ϱй Ϯй ϳϳй Ϭй ϳϱй :Ƶů :ĂŶ :ƵŶ KĐƚ Ɖƌ ^ĞƉ &Ğď ĞĐ ƵŐ EŽǀ DĂƌ DĂǇ :ƵůͲϭϴ :ĂŶͲϭϴ :ƵŶͲϭϴ KĐƚͲϭϳ ƉƌͲϭϴ ^ĞƉͲϭϳ &ĞďͲϭϴ ĞĐͲϭϳ ƵŐͲϭϳ EŽǀͲϭϳ DĂƌͲϭϴ DĂǇͲϭϴ

ΎhEtdKĞĨŝŶŝƚŝŽŶ ;^ŽƵƌĐĞ͗/d͕hEtdKͿ ;^ŽƵƌĐĞ͗/dͿ

FREIGHT TRAFFIC ϭϲй &d< &ƌĞŝŐŚƚdŽŶŶĞͲ<ŝůŽŵĞƚƌĞƐͲ&d< ϭϮ͘ϭй

ϭϮй tŽƌůĚĨƌĞŝŐŚƚƚƌĂĨĨŝĐŐƌĞǁďǇнϮ͘ϭйzŽzŝŶ:ƵůǇϮϬϭϴ͕ͲϬ͘ϲƉĞƌĐĞŶƚĂŐĞƉŽŝŶƚƐůŽǁĞƌ ϵ͘Ϯй ϴ͘ϴй ϴ͘Ϭй ƚŚĂŶƚŚĞŐƌŽǁƚŚŝŶƚŚĞƉƌĞǀŝŽƵƐŵŽŶƚŚ͘&ƌĞŝŐŚƚƚƌĂĨĨŝĐŐƌŽǁƚŚƌĞĂĐŚĞĚŝƚƐƐĞĐŽŶĚ ϴй ƐůŽǁĞƐƚƉĂĐĞŝŶƚŚĞůĂƐƚŽŶĞǇĞĂƌ͘ůůƌĞŐŝŽŶƐƉŽƐƚĞĚĂĚĞĐĞůĞƌĂƚŝŽŶŝŶŐƌŽǁƚŚ͕ ϲ͘ϴй ĞǆĐĞƉƚĨŽƌĂƐůŝŐŚƚƵƉƚƵƌŶŝŶƚŚĞDŝĚĚůĞĂƐƚ͘dŚĞƌĞŐŝŽŶƌĞĐŽƌĚĞĚƚŚĞĨĂƐƚĞƐƚ ϱ͘ϵй ϱ͘ϳй ϰ͘ϭй ϰ͘Ϯй zŽzŐƌŽǁƚŚ ϰй ŐƌŽǁƚŚ͕ĨŽůůŽǁĞĚďǇ>ĂƚŝŶŵĞƌŝĐĂͬĂƌŝďďĞĂŶ͘&ŽƌƚŚĞƚŚŝƌĚĐŽŶƐĞĐƵƚŝǀĞŵŽŶƚŚ͕ Ϯ͘ϳй ĨƌŝĐĂǁĂƐƚŚĞŽŶůǇƌĞŐŝŽŶǁŝƚŚŶĞŐĂƚŝǀĞŐƌŽǁƚŚ͕ƌĞĨůĞĐƚŝŶŐǁĞĂŬĞƌĚĞŵĂŶĚ ϭ͘ϳй Ϯ͘ϭй Ϭй ƚŽͬĨƌŽŵƚŚĞƌĞŐŝŽŶ͘dŚĞůĂƌŐĞƐƚƌĞŐŝŽŶŽĨĨƌĞŝŐŚƚƚƌĂĨĨŝĐ͕ƐŝĂͬWĂĐŝĨŝĐ͕ĐŽŶƚŝŶƵĞĚƚŽ

ƵŶĚĞƌŐŽƐůƵŐŐŝƐŚŐƌŽǁƚŚ͕ŝŵƉĂĐƚĞĚďǇƚŚĞƌŝƐŝŶŐƚƌĂĚĞƚĞŶƐŝŽŶ͕ĂŶĚĞǆƉĞƌŝĞŶĐĞĚŝƚƐ :ƵůͲϭϴ :ĂŶͲϭϴ :ƵŶͲϭϴ KĐƚͲϭϳ ƉƌͲϭϴ ^ĞƉͲϭϳ &ĞďͲϭϴ ĞĐͲϭϳ ƵŐͲϭϳ EŽǀͲϭϳ DĂƌͲϭϴ ƐůŽǁĞƐƚƉĂĐĞŽĨƚŚĞǇĞĂƌ͘dŚĞŶĞǆƚƚǁŽůĂƌŐĞƐƚĨƌĞŝŐŚƚͲĐĂƌƌǇŝŶŐƌĞŐŝŽŶƐ͕ƵƌŽƉĞĂŶĚ DĂǇͲϭϴ EŽƌƚŚŵĞƌŝĐĂ͕ĂůƐŽŵŽĚĞƌĂƚĞĚŝŶŐƌŽǁƚŚƚŽĂƌŽƵŶĚƚŚĞǁŽƌůĚĂǀĞƌĂŐĞƉĂĐĞ͘ ;^ŽƵƌĐĞ͗/dͿ

52 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018 statistics

▶ CONTINUED FROM PAGE 52 economic development SEP 2018: Air Transport Monthly Monitor SEP 2018: Air Transport Monthly Monitor World Results and AnalysesWorld for Results APR and Analyses 2018. for JUL 2018. Total Total scheduled scheduled services (domestic services and international). (Domestic and international) Air Transport Bureau E-mail: [email protected]

TOP 15 AIRPORTS (Ranked by aircraft departures, passengers and volume of freight) JUL 2018: +2.0%, +3.4%, and +1.6% YoY in terms of aircraft departures, passengers and freight for the Top 15 :h>ϭϴ

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TOP 15 AIRLINE GROUPS (Ranked by RPK) :h>ϭϴ ZW<;ďŝůůŝŽŶͿ й^ŚĂƌĞ ƵŵƵůĂƚŝǀĞ JUL 2018: +5.9% YoY in terms of RPK for the Top 15 zŽz ŽĨtŽƌůĚ Ͳ ϱ ϭϬ ϭϱ ϮϬ Ϯϱ ϯϬ ϯϱ ϰϬ й^ŚĂƌĞ dŽƚĂů /ŶƚĞƌŵƐŽĨZW<͕ƚŚĞdŽƉϭϱĂŝƌůŝŶĞŐƌŽƵƉƐĂĐĐŽƵŶƚĞĚĨŽƌϰϴ͘ϬйŽĨǁŽƌůĚƚŽƚĂůZW<ŝŶ:ƵůǇϮϬϭϴ͕ĂŶĚ hŶŝƚĞĚ ϯϳ͘Ϭ ϲ͘ϵй ϱ͘Ϭй ϱ͘Ϭй ŐƌĞǁďǇнϱ͘ϵйzŽz͘dŚŝƐŐƌŽǁƚŚǁĂƐͲϬ͘ϯƉĞƌĐĞŶƚĂŐĞƉŽŝŶƚůŽǁĞƌƚŚĂŶƚŚĞǁŽƌůĚĂǀĞƌĂŐĞŽŶƐĐŚĞĚƵůĞĚ ĞůƚĂ ϯϲ͘ϰ ϰ͘Ϭй ϰ͘ϵй ϵ͘ϵй ŵĞƌŝĐĂŶ1 ϯϱ͘ϱ Ϭ͘ϴй ϰ͘ϴй ϭϰ͘ϲй ƐĞƌǀŝĐĞƐ͘ůůƚŚĞdŽƉϭϱĂŝƌůŝŶĞŐƌŽƵƉƐƉŽƐƚĞĚzŽzŝŶĐƌĞĂƐĞƐ͘ 2 >ƵĨƚŚĂŶƐĂ'ƌŽƵƉ Ϯϴ͘ϰ ϲ͘ϴй ϯ͘ϴй ϭϴ͘ϰй &Ͳ<>D Ϯϳ͘Ϯ ϭ͘ϵй ϯ͘ϳй ϮϮ͘ϭй hŶŝƚĞĚƌĞƚĂŝŶĞĚƚŚĞϭƐƚƉůĂĐĞǁŝƚŚĂŐƌŽǁƚŚŽĨнϲ͘ϵй͕ƚŚĞƐƚƌŽŶŐĞƐƚƉĂĐĞǁŝƚŚŝŶƚŚĞEŽƌƚŚŵĞƌŝĐĂŶ 1 ŵŝƌĂƚĞƐ Ϯϲ͘ϳ ϲ͘ϯй ϯ͘ϲй Ϯϱ͘ϳй ĂŝƌůŝŶĞƐŝŶƚŚĞdŽƉϭϱ͘ĞůƚĂƌĞŵĂŝŶĞĚĂƚϮŶĚĂŶĚŐƌĞǁŵŽĚĞƐƚůǇďǇнϰ͘Ϭй͘&ŽůůŽǁĞĚǁĂƐŵĞƌŝĐĂŶ͕ 3 /' Ϯϲ͘ϲ ϳ͘ϱй ϯ͘ϲй Ϯϵ͘ϯй ǁŚŝĐŚĞǆƉĞƌŝĞŶĐĞĚƚŚĞƐůŽǁĞƐƚŐƌŽǁƚŚĂŵŽŶŐƚŚĞdŽƉϭϱ͘^ŽƵƚŚǁĞƐƚƌĞŵĂŝŶĞĚĂƚϵƚŚĂŶĚǁĂƐƵƉ ŚŝŶĂ^ŽƵƚŚĞƌŶ Ϯϯ͘ϭ ϭϯ͘ϱй ϯ͘ϭй ϯϮ͘ϰй нϮ͘ϭйzŽz͘ŝƌĂŶĂĚĂƌĂŶŬĞĚϮƉŽƐŝƚŝŽŶƐĚŽǁŶƚŽϭϱƚŚǁŝƚŚĂŶŝŶĐƌĞĂƐĞŽĨнϲ͘ϳйzŽz͘ ^ŽƵƚŚǁĞƐƚ ϮϬ͘ϯ Ϯ͘ϭй Ϯ͘ϳй ϯϱ͘ϭй ŝƌŚŝŶĂ ϭϵ͘Ϯ ϭϬ͘Ϭй Ϯ͘ϲй ϯϳ͘ϳй ŵŝƌĂƚĞƐĐŽŶƚŝŶƵĞĚƚŽƉŽƐƚƌĞĐŽǀĞƌǇǁŝƚŚĂŐƌŽǁƚŚŽĨнϲ͘ϯй͕ĂŶĚŝŵƉƌŽǀĞĚϭƉŽƐŝƚŝŽŶƚŽϲƚŚ͘YĂƚĂƌ ŚŝŶĂĂƐƚĞƌŶ ϭϳ͘ϳ ϴ͘Ϯй Ϯ͘ϰй ϰϬ͘ϭй 1 ƌĞĐŽƌĚĞĚƚŚĞƐĞĐŽŶĚƐƚƌŽŶŐĞƐƚŐƌŽǁƚŚĂŵŽŶŐƚŚĞdŽƉϭϱďǇнϭϮ͘ϵй͕ĂŶĚƌĂŶŬĞĚϮƉŽƐŝƚŝŽŶƐƵƉƚŽϭϯƚŚ͘ ZǇĂŶĂŝƌ ϭϲ͘Ϯ ϰ͘Ϭй Ϯ͘Ϯй ϰϮ͘Ϯй YĂƚĂƌŝƌǁĂǇƐ ϭϱ͘Ϯ ϭϮ͘ϵй Ϯ͘Ϭй ϰϰ͘ϯй >ƵĨƚŚĂŶƐĂƌĞŵĂŝŶĞĚĂƚϰƚŚĂŶĚƌŽƐĞďǇнϲ͘ϴйzŽz͘&Ͳ<>DƉŽƐƚĞĚƚŚĞƐĞĐŽŶĚƐůŽǁĞƐƚŐƌŽǁƚŚĂŵŽŶŐ dƵƌŬŝƐŚŝƌůŝŶĞƐ ϭϰ͘ϰ ϯ͘ϴй ϭ͘ϵй ϰϲ͘Ϯй ŝƌĂŶĂĚĂ1 ϭϯ͘ϱ ƚŚĞdŽƉϭϱǁŚŝůĞƌĞŵĂŝŶĞĚĂƚϱƚŚ͘/'ĚƌŽƉƉĞĚϭƉŽƐŝƚŝŽŶƚŽϳƚŚĂĨƚĞƌŵŝƌĂƚĞƐĂůďĞŝƚǁŝƚŚĂƌĞůĂƚŝǀĞůǇ ϲ͘ϳй ϭ͘ϴй ϰϴ͘Ϭй ƐƚƌŽŶŐŐƌŽǁƚŚŽĨнϳ͘ϱй͘zŽzŐƌŽǁƚŚŽĨdƵƌŬŝƐŚŝƌůŝŶĞƐƐůŽǁĞĚĚŽǁŶƐůŝŐŚƚůǇĐŽŵƉĂƌĞĚƚŽƚŚĞƉƌĞǀŝŽƵƐ dŽƉϭϱdŽƚĂůZW<Ɛ ϯϱϳ ďŝůůŝŽŶ ϱ͘ϵй ϰϴ͘Ϭй ŵŽŶƚŚ͕ĂŶĚƌĂŶŬĞĚϭϰƚŚ͘ tŽƌůĚdŽƚĂůZW<Ɛ ϳϰϰ ďŝůůŝŽŶ ϲ͘Ϯй ϭϬϬ͘Ϭй DĂũŽƌĂŝƌůŝŶĞƐŝŶƐŝĂͬWĂĐŝĨŝĐĐŽŶƚŝŶƵĞĚƚŽŐƌŽǁƌŽďƵƐƚůǇ͕ǁŝƚŚŚŝŶĂ^ŽƵƚŚĞƌŶƌĞĐŽƌĚŝŶŐƚŚĞĨĂƐƚĞƐƚ ;^ŽƵƌĐĞ͗/K͕ĂŝƌůŝŶĞƐΖǁĞďƐŝƚĞƐͿ ŐƌŽǁƚŚďǇнϭϯ͘ϱй͕ĂŶĚƌĂŶŬĞĚϴƚŚ͘ŝƌŚŝŶĂĂŶĚŚŝŶĂĂƐƚĞƌŶŐƌĞǁƐƚƌŽŶŐůǇĂŶĚƌĞŵĂŝŶĞĚĂƚϭϬƚŚ EŽƚĞ͗dŽƚĂůƐĐŚĞĚƵůĞĚĂŶĚŶŽŶͲƐĐŚĞĚƵůĞĚƐĞƌǀŝĐĞƐ ĂŶĚϭϭƚŚ͕ƌĞƐƉĞĐƚŝǀĞůǇ͘

CAPACITY BY REGION (ICAO Statistical Regions) tŽƌůĚǁŝĚĞĐĂƉĂĐŝƚǇĞǆƉĂŶĚĞĚďǇ нϱ͘ϱйzŽzŝŶ:ƵůǇϮϬϭϴ͕ĂůďĞŝƚǁŝƚŚĂůů JUL 2018: +5.5% YoY in terms of World ASK ƌĞŐŝŽŶƐƉŽƐƚŝŶŐĚĞĐĞůĞƌĂƚŝŽŶŝŶƉĂĐĞŽĨ й^ŚĂƌĞŽĨĂƉĂĐŝƚǇďǇZĞŐŝŽŶ нϰ͘ϬйzŽz ŐƌŽǁƚŚĐŽŵƉĂƌĞĚƚŽƚŚĞƉƌĞǀŝŽƵƐ нϱ͘Ϭйzd Ϯ͘ϱй нϰ͘ϬйzŽz ŵŽŶƚŚ͘ƐŝĂͬWĂĐŝĨŝĐƌĞŵĂŝŶĞĚĂƐƚŚĞ ϱ͘ϭй ƐŝĂͬWĂĐŝĨŝĐ нϰ͘ϱйzd ĨĂƐƚĞƐƚŐƌŽǁŝŶŐƌĞŐŝŽŶ͕ĨŽůůŽǁĞĚďǇƚŚĞ ƵƌŽƉĞ DŝĚĚůĞĂƐƚ͘>ĂƚŝŶŵĞƌŝĐĂͬĂƌŝďďĞĂŶ͕ ϭϬ͘Ϯй нϳ͘ϵйzŽz ϯϭ͘Ϭй EŽƌƚŚŵĞƌŝĐĂ нϴ͘ϳйzd ĂƐǁĞůůƌĞĐŽƌĚĞĚĨĂƐƚĞƌĞǆƉĂŶƐŝŽŶƚŚĂŶ нϲ͘ϭйzŽz ƚŚĞǁŽƌůĚĂǀĞƌĂŐĞ͘ Ϯϯ͘ϲй DŝĚĚůĞĂƐƚ нϬ͘ϴйzŽz нϰ͘ϳйzd Ϯϳ͘ϳй нϱ͘ϵйzŽz нϭ͘Ϭйzd ƵƌŽƉĞ͕EŽƌƚŚŵĞƌŝĐĂĂŶĚĨƌŝĐĂ >ĂƚŝŶŵĞƌŝĐĂͬĂƌŝďďĞĂŶ нϲ͘ϭйzd ƉŽƐƚĞĚƐůŽǁĞƌƉĂĐĞŝŶĐĂƉĂĐŝƚǇ tŽƌůĚ͗ ĨƌŝĐĂ нϱ͘ϱйzŽz ŝŶĐƌĞĂƐĞ͕ǁŝƚŚĨƌŝĐĂĞǆƉĞƌŝĞŶĐŝŶŐƚŚĞ ;^ŽƵƌĐĞ͗/K͕/d͕K'Ϳ нϲ͘ϭйzd ƐůŽǁĞƐƚƉĂĐĞ͘ EŽƚĞ͗dŽƚĂůƐĐŚĞĚƵůĞĚƐĞƌǀŝĐĞƐ

ZKEzD^͗/͗ŝƌƉŽƌƚƐŽƵŶĐŝů/ŶƚĞƌŶĂƚŝŽŶĂů͖^<͗ǀĂŝůĂďůĞ^ĞĂƚͲ<ŝůŽŵĞƚƌĞƐ͖/d͗/ŶƚĞƌŶĂƚŝŽŶĂůŝƌdƌĂŶƐƉŽƌƚƐƐŽĐŝĂƚŝŽŶ͖&d<͗&ƌĞŝŐŚƚdŽŶŶĞͲ<ŝůŽŵĞƚƌĞƐ͖>&͗WĂƐƐĞŶŐĞƌ>ŽĂĚ&ĂĐƚŽƌ͖ K'͗KĨĨŝĐŝĂůŝƌůŝŶĞ'ƵŝĚĞ͖ZW<͗ZĞǀĞŶƵĞWĂƐƐĞŶŐĞƌͲ<ŝůŽŵĞƚƌĞƐ͖hEtdK͗tŽƌůĚdŽƵƌŝƐŵKƌŐĂŶŝǌĂƚŝŽŶ͖zŽz͗zĞĂƌͲŽŶͲǇĞĂƌ͖zd͗zĞĂƌͲƚŽͲĚĂƚĞ͘

53 | HERMES • THE MAGAZINE #3 › JULY-SEPTEMBER 2018