Wellington Airport Monthly Overview - September 2008
21 October 2008
Wellington Airport September 2008 operational figures are available hereThe underlying demand for air travel appears to have eased in recent months, perhaps by around 5% versus the previous year. Wellington Airport, however, continues to grow strongly in the domestic market and has been less impacted than the trend in international, due to additional competition and capacity from Pacific Blue.
Domestic
September passenger numbers increased 10% above the previous period. A decrease in average seat load in September to 71% from the previous year’s 75.9% followed a substantial increase in seat capacity of 18%. Year to date domestic passenger volume for the five months ended is at 15.9% above the previous year following a 19.4% increase in seat capacity. It is noted that, based on current trends, monthly comparables are likely to become flat or negative after the mid-November anniversary of Pacific Blue’s entry.
International
International passengers in September were 3% below those of the previous year, following a 4% increase in capacity. Again, a lower underlying demand was offset by passenger numbers on the Brisbane service which continued to benefit from the two additional Pacific Blue services commenced in July. An average load factor remains relatively healthy at 74%, although this is down from the previous year’s 79.3%. Year to date passengers are 1.1% below the previous year with seat capacity increased by 2%.
Comment
The recent announcement by low cost carrier Jetstar to add trans-Tasman services from Auckland is a welcome addition to the New Zealand international market. The Wellington market, while obviously being smaller than Auckland, is well placed to receive further international growth. Wellington has a very attractive market for airlines and competition is currently limited, particularly to Sydney and Melbourne.
Wellington Airport’s team has extensive experience in dealing with low cost airlines and in commercial negotiations with airlines. Infratil Airports has experience in Europe negotiating successfully with low cost carriers in a highly competitive environment and has a team in Wellington and Europe with direct experience working within low cost carriers including easyJet and Tiger. The successful introduction of Pacific Blue into the domestic market is a recent example of success in this area. Wellington Airport also works in partnership with Wellington region business and tourism organisations on the promotion of new services.
Work on WIAL's Northern runway end safety enhancement is complete bringing Wellington Airport in line with new international aviation safety requirements. Nearing completion is construction of two new retail outlets in the main terminal, Discover New Zealand selling souvenirs, and Sunglass Hut. Both will open in November.
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