Among major carriers, capacity adjustments over the past eight weeks have remained within 2 pc: OAG
Ahead of European airlines reporting their first-quarter results, OAG data shows that the transatlantic market between Europe and the United States has remained stable, with minimal changes in overall capacity and slight reductions in airfares.
In a press statement, OAG says that the three largest US legacy airlines have published their Q1 results, noting that while the domestic market has shown signs of easing, outbound international demand, especially to Europe, remains stable. As per summer travel data the transatlantic segment is continuing without major disruption.
It adds that the capacity data for the April–October period indicates approximately 33.1 million one-way seats are scheduled from Europe to the United States. This is a 0.3 pc increase from the 32.9 million seats projected eight weeks prior. As per the figures, there is no significant capacity movement, reflecting a stable market outlook.
OAG states that among major carriers, capacity adjustments over the past eight weeks have remained within 2 pc, indicating no significant strategic shifts except for Iceland’s low-cost carrier Fly Play, which has increased capacity by 19 pc, and French airline La Compagnie, which has reduced its planned operations by nearly 25 pc.
The global aviation data provider, based in the United Kingdom, says suggests that airlines are maintaining their schedules as planned, given that flights for the summer season have been available for booking for an extended period. Adjusting schedules at this point would involve complex rebooking processes and is unlikely to generate immediate advantages due to limited alternative demand opportunities.
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According to the statement, while capacity levels have remained largely unchanged, average airfares have shown a downward trend. This may indicate that airlines are stimulating demand by offering lower fares. On three-quarters of the 20 largest transatlantic routes, economy-class fares have decreased compared to the same period last year. Notable declines include New York–Rome and Madrid–New York, where fares have dropped by nearly 15 pc.
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Basing its analysis on seven routes, the data provider states that while capacity levels have remained largely unchanged, average airfares have declined, suggesting that airlines are stimulating demand by lowering fares. On three-quarters of the twenty largest transatlantic routes, economy-class fares have decreased compared to the same period last year. Notable declines include New York–Rome and Madrid–New York, where fares have dropped by nearly 15 pc.
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Additionally, OAG says that Dallas–London route has seen now seen a 12.5 pc reduction in capacity and a 10.1 pc decline in fare. Similarly, Chicago–London shows a 12.8 pc capacity drop and a 5.1 pc reduction in average fares. However, fares from London to Washington, Miami, and Orlando have increased despite stable capacity, likely due to early bookings by consumers seeking to secure lower prices.
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According to a press statement, the British company states that current pricing adjustments fall within standard revenue management practices, as airlines have not expressed concern over recent fare reductions, particularly since fuel prices are now 14 pc lower than in 2023. For carriers without fuel hedging, this drop helps offset the revenue impact of lower ticket prices.
As per press statement, OAG says that while transatlantic market may not match performance levels of previous years, it continues to deliver consistent output for airlines. At the same time, passengers may benefit from more accessible fare options.
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