Sep 1, 2006
Changi set for record traffic With new airlines and record numbers in July, 2006 figure likely to surpass last year's high of 32 million passengers
By Aviation Correspondent, Karamjit Kaur
CHANGI Airport is on track to break last year's passenger traffic record, despite the recent security scare in Britain.
In July, Changi handled 3.05 million passengers - a record for any single month and a 5.2 per cent increase from July last year.
It brings to almost 20 million the total number of passengers for the first seven months of the year, 8.5 per cent higher than the same period last year.
At this rate, and with new airlines coming in, the 2006 passenger figure should easily surpass last year's record 32 million.
Changi's Budget Terminal, for example, welcomed the maiden flight of its second airline tenant, Manila-based Cebu Pacific, just before midnight yesterday.
Both here and overseas, it looks like clear skies ahead for airlines and airports.
Barely a month after British authorities foiled a plot to blow up a number of transatlantic flights, the International Air Transport Association (Iata) has declared that the incident, which led to massive delays in the ensuing days, is not expected to cause the kind of slump that followed the Sept 11, 2001 attacks in the United States.
Iata, which represents 261 carriers, yesterday announced an improved revised forecast of a US$1.7 billion (S$2.68 billion) loss for airlines worldwide this year, compared to its earlier estimate of US$3 billion.
This improvement has come in spite of rising fuel costs and the fact that fuel now makes up an average 26 per cent of the total operating costs for airlines.
Last year, airlines worldwide spent a total of US$91 billion on fuel and suffered US$3.2 billion in losses.
Iata's director-general and chief executive officer Giovanni Bisignani said in a statement: 'We are still in the red, but what other industry could add US$24 billion to its second largest cost (fuel) in a year and still improve the bottom line?
'Efficiency, hard work and a strong revenue environment have all contributed to this amazing result.'
The industry which has been hit by one disaster after another, starting with the Sept 11 attacks, has spent the last few years reviewing operations and trimming excesses.
Efforts are paying off and the good show at Changi so far this year mirrors the industry's performance worldwide.
Between January and July, international passenger traffic grew 6.4 per cent over the same period last year.
More important for the bottom line is that airlines are filling more seats.
Between January and July, planes were an average 76 per cent full, while last month's average was an 'amazing' 80.8 per cent, Iata said in its statement.
Will the revival continue into next year?
Yes, according to Iata.
After losing money steadily since 2001, the industry should return to profit next year.
However, the association has revised that profit forecast downwards, from US$3.3 billion to US$1.9 billion.
Mr Bisignani said: 'Overall, the industry has never been so lean, mean and well poised to return to profitability.'
But wild cards remain.
The US economy is expected to slow down next year and the long-term impact of terrorism and instability in the Middle East has still to be calculated.
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