Paris Olympics and Holiday Season Boost Australia’s Aviation Sector Recovery Post-COVID-19

August 13, 2024 TruthUSA

In July 2024, Australia’s aviation network experienced a 4 percent increase in daily average flights compared to June.

The Paris Olympic Games and school holidays aided the Australian aviation industry in reaching pre-COVID-19 pandemic levels in July 2024, despite facing some challenges.

As per a recent report (pdf) by Airservices Australia, the country’s aviation network witnessed a 4 percent uptick in daily average flights in July, surpassing the previous month’s figures.

On an average day, there were 3,805 flights, matching the levels seen in July 2019.

The total number of domestic flights reached 99,358, equivalent to 102 percent of July 2019’s volume and a 3 percent increase from May 2024.

Despite international flights rising from 17,529 in May to 18,597 in July, the numbers only equated to 92 percent of July 2019’s level.

According to the report, “The start of the 2025 financial year is marked by a number of positive economic developments, such as a surge in Australian tourism to Japan driven by a weak Yen, decreasing airfares, and increasing business travel demand.”

“Jet fuel supply issues, cost-of-living pressures, and global economic uncertainty remain concerns for industry growth,” the report highlighted.

Driving the growth in the domestic network was the mining industry, particularly boosting passenger flights at regional airports in Western Australia and Queensland.

This growth led to congestion and delays in the regional network, especially during peak times, further exacerbated by the suspension of Rex’s Boeing 737 services at the end of July.

Rex, a regional airline, entered voluntary administration on July 31, following the collapse of budget airline Bonza, resulting in 600 job losses and leaving the futures of Rex’s remaining 1,000 employees uncertain.

Conversely, the international network experienced significant growth, with European, South East Asian, Chinese, and New Zealand markets all recording over 20 percent growth in July compared to June 2024.

Notably, air traffic from Australia to Europe and the Indian subcontinent surged by 71 percent and 130 percent respectively compared to July 2019.

“These markets reflect popular tourist destinations during the July school holidays and the impact of the Paris Olympic Games, including the launch of a new direct route between Paris and Perth in July 2024,” the report mentioned.

Drop in On-Time Performance

Despite the increase in flights, Australia’s aviation network witnessed a decline in on-time performance (OTP), primarily due to adverse weather conditions.

“Weather disruptions contributed to the overall industry OTP decline in Australia, with similar declines seen in other markets, like Europe, affected by summer weather challenges and industrial actions,” the report explained.

Ground delays across the network also significantly rose in July, attributed to factors like strong crosswinds, CrowdStrike IT outages, and low visibility operations at major airports in Sydney, Melbourne, and Brisbane.

“July saw the highest application of simultaneous Ground Delay Program (GDP) on the East Coast so far in 2024, with a 33 percent increase in ground delays across the network,” the report noted. “GDP compliance dropped below 80 percent for the first time in four months.”

Source link