The Federal Association of German Airlines (BDF) has no hopes for a lasting recovery of the aviation industry in 2009 and advises against premature optimism for the upcoming year. The airlines are presently struggling with decreased average returns, making them vulnerable to higher airport fees, government fees and rising fuel costs, said BDF chairman Michael Engel during a meeting of the works council of the German airports on Friday in Nuremberg.
“What we experienced in the first half of 2009 was the most severe slump in passenger numbers in the recent history of the German airlines.” Passenger numbers in Germany in the first half of 2009 decreased by 7.7% compared to the previous year. More severe, even, was the decline in average returns, with several airlines having lost more than twice as much as they did in passenger numbers. “We do see more passengers in our planes and a rise in utilization rates, but revenues are still on a very low level. The airlines continue to operate on volumes comparable to 2006 and 2007, though at 20% less returns, especially from high-priced tickets.”
Normally, the airlines generate a large part of their revenues in the summer months from June to August. These yielded significantly lower returns this year due to the crisis. The second half of the year, meanwhile, may be negatively affected by an increase in oil prices. While a barrel of oil was priced at an average $45 in the first quarter, prices rose to more than $70 in August.
The association is further worried about the developments regarding fees for air traffic control, air security and airport fees. ”The airlines are looking towards a crushing €200 million in additional costs. For many, this means that all cost cutting measures within the company are being thoroughly canceled out in a single blow,” said Engel. Consequently, the BDF demands of the government and the state aeronautical authorities to reject any increase of state regulated fees and so help overcome the crisis. Decisions on the matter are due in September, when the National Aviation Working Group will present to the federal government its propositions for bringing relief to the industry.
