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Boeing scraps 2019 financial forecast, halts share buybacks in wake of 737 MAX disaster

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World’s biggest aerospace corporation was forced to pull its full financial forecast for the current year due to unresolved issues surrounding Boeing’s once best-selling 737 MAX aircraft.

Boeing also announced plans to pause share buybacks, citing “a challenging time for our customers, stakeholders and the company.”

“Across the company, we are focused on safety, returning the 737 MAX to service, and earning and re-earning the trust and confidence of customers, regulators and the flying public,” Boeing Chairman and CEO Dennis Muilenburg said in a statement.

The manufacturer had previously posted a report on the first-quarter earnings that managed to fall in line with analysts’ expectations, while its revenue was slightly less than projected. Boeing’s earning per share totaled the expected $3.16 from January through March, while the revenue amounted to $22.92 billion against $22.98 billion forecasted by London-based provider of financial markets data Refinitiv.

Boeing stressed that the previous guidance didn’t reflect the impact of two crashes of the company’s flagship planes, leading to the grounding of all 737 MAX 8 jets by global regulators, lawsuits from some air carriers and a decline in market value.

According to the producer, more than 135 test and production flights of updated software for the 737 MAX have been carried out so far.

Boeing’s bestseller crashed on March 10 not far from the Ethiopian capital of Addis Ababa six minutes after takeoff on the way to Nairobi, Kenya. The tragedy, which killed 157 people, marked the second crash involving the same jet model in less than six months. In October, the same type of aircraft, operated by Indonesia’s Lion Air, crashed in the Java Sea shortly after takeoff, claiming the lives of 189 people.

Travel News | eTurboNews

Hawaii hotels: Flat average daily rate, lower occupancy so far in 2019

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For the first three months of 2019, Hawaii hotels statewide reported flat average daily rate (ADR) and lower occupancy, which resulted in lower revenue per available room (RevPAR) compared to the first quarter of 2018.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR declined to $236 (-3.3%), with ADR of $292 and occupancy of 80.8 percent (-2.7 percentage points) in the first quarter of 2019.

HTA’s Tourism Research Division issued the report’s findings utilizing data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Islands.

For the first quarter, Hawaii hotel room revenues fell by 4.7 percent to $1.13 billion compared to the $1.18 billion earned in the first quarter of 2018. There were more than 74,300 fewer available room nights (-1.5%) in the first quarter and approximately 190,500 fewer occupied room nights (-4.7%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during the first quarter.

All classes of Hawaii hotel properties statewide reported RevPAR declines in the first quarter of 2019 except Upper Midscale Class properties ($134, +0.6%). Luxury Class properties reported RevPAR of $452 (-5.4%) with ADR of $594 (-1.2%) and occupancy of 76.1 percent (-3.3 percentage points). At the other end of the price scale, Midscale & Economy Class hotels reported RevPAR of $155 (-5.0%) with ADR of $187 (-0.5%) and occupancy of 83.1 percent (-3.9 percentage points).

Comparison to Top U.S. Markets

In comparison to top U.S. markets, the Hawaiian Islands earned the highest RevPAR at $236 in the first quarter, followed by the San Francisco/San Mateo market at $210 (+15.9%) and the Miami/Hialeah market at $208 (-3.5%). Hawaii also led the U.S. markets in ADR at $292 followed by San Francisco/San Mateo and Miami/Hialeah. The Hawaiian Islands ranked fifth for occupancy at 80.8 percent, with Miami/Hialeah topping the list at 83.0 percent (-2.1 percentage points).

Hotel Results for Hawaii’s Four Counties

Hotel properties in Hawaii’s four island counties all reported RevPAR decreases in the first quarter of 2019. Maui County hotels led the state overall in RevPAR at $337 (-2.7%), with ADR at $428 (-0.9%) and occupancy at 78.6 percent (-1.5 percentage points).

Kauai hotels earned RevPAR of $228 (-10.2%), with flat ADR at $305 (+0.2%) and lower occupancy of 74.8 percent (-8.7 percentage points).

Hotels on the island of Hawaii reported a decline in RevPAR to $225 (-9.7%), due to a combination of decreases in both ADR ($285, -2.0%) and occupancy (79.1%, -6.7 percentage points).

Oahu hotels earned slightly lower RevPAR at $196 (-0.9%), with ADR at $236 (+0.8%) and occupancy of 83.0 percent (-1.4 percentage points).

Comparison to International Markets

When compared to international “sun and sea” destinations, Hawaii’s counties were in the middle of the pack for RevPAR in the first quarter of 2019. Hotels in the Maldives ranked highest in RevPAR at $575 (+4.5%) followed by Aruba at $351 (+11.2%). Maui County ranked third, with Kauai, the island of Hawaii, and Oahu ranking sixth, seventh and eighth, respectively.

The Maldives also led in ADR at $737 (+5.2%) in the first quarter, followed by French Polynesia at $497 (-1.1%). Maui County ranked fifth, followed by Kauai and the island of Hawaii. Oahu ranked ninth .

Oahu trailed Phuket (84.5%, -6.3 percentage points) in occupancy for sun and sea destinations in the first quarter. The island of Hawaii, Maui County and Kauai ranked fourth, fifth and ninth, respectively.

March 2019 Hotel Performance

In March 2019, RevPAR for Hawaii hotels statewide declined to $227 (-4.3%), with ADR of $285 (-1.1%) and occupancy of 79.6 percent (-2.7 percentage points).

In March, Hawaii hotel room revenues fell by 5.9 percent to $373.3 million. There were more than 27,200 fewer available room nights (-1.6%) in March and approximately 66,850 fewer occupied room nights (-4.9%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during March. However, the number of rooms out of service may be under-reported.

All classes of Hawaii hotel properties statewide reported RevPAR declines in March. Luxury Class properties reported RevPAR of $443 (-7.2%) with ADR of $583 (-3.1%) and occupancy of 75.9 percent (-3.4 percentage points). Midscale & Economy Class hotels reported RevPAR of $150 (-2.9%) with ADR of $182 (+0.8%) and occupancy of 82.0 percent (-3.1 percentage points).

Hotel properties in Hawaii’s four island counties all reported lower RevPAR for March. Maui County hotels reported the highest RevPAR in March at $336 (-1.4%) with ADR of $421 (-1.6%) and flat occupancy (79.8%, +0.2 percentage points).

Oahu hotels reported lower occupancy (80.4%, -2.3 percentage points) and flat ADR ($230, -0.2%) for March.

Hotels on the island of Hawaii continued to face challenges in March, with RevPAR dropping 11.2 percent to $216, ADR to $272 (-4.9%) and occupancy to 79.2 percent (-5.7 percentage points).

RevPAR for Kauai hotels fell to $213 (-14.6%) in March, with declines in both ADR to $286 (-4.5%) and occupancy to 74.4 percent (-8.8 percentage points).

Travel News | eTurboNews

eTN becomes a SUNx SDG 17 Partner calling for Climate Sanity in Tourism on Earth Day

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In nature, nothing exists alone is the message for Earth Day 2019. Announcing the public launch of its “SDG17 Partners Program” on Earth Day 2019, Professor Geoffrey Lipman co-founder SUNx, calls and president of the International Coalition of Tourism Partners (ICTP) asks the Travel & Tourism sector to join its “Plan For Our Kids” and take the “Climate Sanity” Pledge.

Professor Lipman, former Executive Director at IATA, President of WTTC and Assistant Secretary-General UNWTO, said:

“I’m confident that Travel & Tourism will play a leadership role in the global shift to a New Climate Economy: we just need a pathway for change and that lies in our faith in the next generation”

SUNx a legacy for Planetary Champion Maurice Strong has created a “Plan For Our Kids”, aiming to recruit 100,000 STRONG Climate Champions to advance its vision of a no Carbon 2050 sector totally compliant with the evolving goals of the Paris Accords.

He added “During the past year we have seen a welcome intensification of the pressures for a new commitment to Climate Sanity, which stops discussing whether climate change is existential and just gets on with solutions. That’s the common message from Greta Thunberg’s Friday’s for Futures and AOC’s Green New Deal: it’s the message from Earth Scientists and Nobel Economists: it’s the plea from Sir David Attenborough.

”Lipman concluded “SDG 17 Partners will share our long-term vision on the fact that Climate Change is eXistential and that we have to act NOW, as if this Earth Day is the first day of the rest of our lives. We all have different starting positions, based on our separate realities: but we have a shared goal of meeting the Paris Agenda and together taking a “No Carbon 2050 moonshot”. We can deliver Climate Friendly Travel ~ measured plans: green growth: 2050 no carbon proof “

Juergen Steinmetz president of the eTN Corporation said “We are proud to become a SUNx SDG 17 Partner and provide preferential support for this great cause. As long as I have known Geoffrey Lipman, he has been drumming home the message that Climate Change is eXistential and that if we don’t fix it now, it will fix us. We are in, and will use all our links, like ICTP and the African Tourism Board to support Climate Friendly Travel. going forward”.

For more on SUNx and its SDG 17 Partnership Program please contact: go to www.thesunprogram.com

What is Earth Day?

The first Earth Day on April 22, 1970, activated 20 million Americans from all walks of life and is widely credited with launching the modern environmental movement. The passage of the landmark Clean Air Act, Clean Water Act, Endangered Species Act and many other groundbreaking environmental laws soon followed. Twenty years later, Earth Day went global, mobilizing 200 million people in more than 190 countries and lifting environmental issues onto the world stage.

On April 22, 1970, millions of people took to the streets to protest the negative impacts of 150 years of industrial development.

In the U.S. and around the world, smog was becoming deadly and evidence was growing that pollution led to developmental delays in children. Biodiversity was in decline as a result of the heavy use of pesticides and other pollutants.

The global ecological awareness was growing, and the US Congress and President Nixon responded quickly. In July of the same year, they created the Environmental Protection Agency, and robust environmental laws such as the Clean Water Act and the Endangered Species Act, among many.

One billion people

Earth Day is now a global event each year, and more than 1 billion people in 192 countries now take part in what is the largest civic-focused day of action in the world.

It is a day of political action and civic participation. People march, sign petitions, meet with their elected officials, plant trees, clean up their towns and roads. Corporations and governments use it to make pledges and announce sustainability measures. Faith leaders, including Pope Francis, connect Earth Day with protecting God’s greatest creations, humans, biodiversity and the planet that we all live on.

Earth Day Network, the organization that leads Earth Day worldwide, has chosen as the theme for 2018 to End Plastic Pollution, including creating support for a global effort to eliminate primarily single-use plastics along with global regulation for the disposal of plastics.  EDN is educating millions of people about the health and other risks associated with the use and disposal of plastics, including pollution of our oceans, water, and wildlife, and about the growing body of evidence that plastic waste is creating serious global problems.

From poisoning and injuring marine life to the ubiquitous presence of plastics in our food to disrupting human hormones and causing major life-threatening diseases and early puberty, the exponential growth of plastics is threatening our planet’s survival.

Travel News | eTurboNews

Easter School Holidays ring in busy travel season at Frankfurt Airport

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With the Easter holidays around the corner, Frankfurt Airport (FRA) is preparing for this year’s first travel peak. Germany’s largest aviation hub expects to welcome up to 215,000 passengers daily – particularly at the start of the Easter school holidays on the weekend from April 12 to 15. The busy travel season will continue also after the Easter holidays. During summer, more than 240,000 passengers are expected to pass through the FRA global aviation hub on peak days, thus reaching similar levels as last year. Passenger volumes are not expected to decline noticeably until October, when Frankfurt Airport switches to the winter flight schedule.

Five tips for a smooth airport experience

Passengers should should therefore follow a few key pieces of advice when preparing for their journey. Each individual passenger can contribute to avoiding unnecessary delays and ensuring a stress-free travel experience at the counters and security checkpoints in the terminals.

  1. Check in online: Passengers can usually check in online 24 hours before departure on their airline’s website. This saves time at the check-in counter.
  2. Arrive early: Passengers should be at the airport at least two and a half hours before departure and make their way to the security check immediately after dropping off their luggage. Once having passed the security checkpoint, passengers will find a wide range of amenities and leisure experiences to choose from, including FRA’s Movie and Gaming Worlds, yoga rooms and play areas for children, as well as shops and restaurants.
  3. Take as little carry-on luggage as possible: Your carry-on luggage should only contain items that are essential during your journey on the plane and at the airport. Carrying light luggage is the best way to ensure a relaxed airport experience. It also saves time at the security checkpoint and when boarding the plane. Packing correctly also helps reduce stress. Therefore, travelers should check their airline’s luggage rules and allowances before starting their trip. The airline will provide details about the size, number and weight permitted. Aviation regulations specify what is allowed in each piece of luggage.
  4. Stow liquids and electronics correctly: Particular attention must be paid to liquids and electronic devices. Batteries, e-cigarettes and power banks must be transported in carry-on luggage. Liquids in carry-on luggage must be stored in individual receptacles of up to 100 ml each in a resealable, transparent plastic bag with a maximum volume of one liter per passenger. Electronic devices and liquids must be presented separately at the security check. Security checks can be sped up considerably by packing everything so that it is quickly accessible and easily restowable.
  5. Book parking online: Booking parking online early is strongly recommended for passengers traveling to the airport in their own car. It is also cheaper. In addition to arriving two and a half hours before departure, we recommend that passengers allow a few minutes’ additional time for traveling between the parking structure and the terminal.

“Following these travel tips and the luggage regulations will help each person have a more enjoyable airport experience,” explains Fraport AG’s General Manager Aviation, Dr. Pierre Dominique Prümm. “This will also positively contribute to smooth operations and the overall situation at our airport. Nevertheless, Frankfurt Airport – like all other travel hubs and routes – will be very busy in the summer months, especially during vacation periods. We are preparing for this as effectively as possible with additional staff and adjustments to our infrastructure. Yet, longer waits can still be expected on peak days. Our aim is to keep waiting times as short as possible. To achieve this, we rely on the cooperation of passengers and our partners on site, as well as airlines and government agencies.”

Passengers can find all the travel tips and a lot more useful information at frankfurt-airport.com and via the Frankfurt Airport app.

Leave your winter coat at the airport

During the Easter holidays, the popular Winter Coat Storage Service is available for the last time this season at the luggage storage service. For 50 euro cents per day, down jackets and thick coats can be left at the airport, while their owners enjoy their vacation in the sun.

Travel News | eTurboNews

Cable Car to be introduced on Mount Kilimanjaro, amid protest

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A cable car is to be rolled out on Mount Kilimanjaro by a foreign company to improve access and boost tourism, amid strong protest from key local industry players.

Overlooking the sprawling Savannah plains of Tanzania and Kenya, the snow-capped mountain of Kilimanjaro rises majestically in splendid isolation to 5,895 metres above the sea level, making it the world’s highest freestanding peak.

Tanzania Deputy minister for Natural Resources and Tourism Constantine Kanyasu says the Cable Car facility was part of the government’s latest strategy to woo tourists with over 50 years of age.

Mr Kanyasu says that they hope that the cable car will allow more ageing tourists to experience the wide variety of nature and wildlife of Mount Kilimanjaro.

Instead of the familiar views of snow and ice, this cable car would offer a day trip safari with a bird’s eye view, contrary to the eight-day hiking trip.

The initial work for the cable car has just taken off with AVAN Kilimanjaro hiring the Crescent Environment and Management (CEM) Consult Limited to conduct Environmental and Social Impact Assessment (ESIA).

CEM officer Beatrice Mchome had engaged tour operators and other mountain stakeholders in Kilimanjaro and Arusha region where she made presentations on the proposed cable car and a lodge projects as part of the ESIA process.

Uproar

Key industry players, namely tour operators, guides and porters strongly protest the new facility, saying climbing the magnificent Kilimanjaro Mountain on foot is a lifetime experience that should never be compromised by cable cars.

Mount Kilimanjaro Porters Society (MKPS) opposes the cable car product outright, saying it will deny employment nearly 250,000 unskilled porters scaling up Mount Kilimanjaro for a wage each year.

“Much as the cable car service doesn’t require porters, majority of tourists will climb Mount Kilimanjaro on day trip basis using the new product to cut down costs and length of stay,” MKPS vice chairman Edson Mpemba explains.

Mpemba wonders that decision makers had overlooked interests of the huge number of unskilled labour force, which solely depends on the mountain to eke out a living.

“Think of the ripple effect on families of the 250,000 unskilled porters,” he stresses, cautioning:

“The cable car facility will initially look like a noble and innovative idea, but it will, in a long run, ruin the future of the majority of local people whose livelihood depends on the mountain.”

Seasoned tour guide Victor Manyanga echoes his fears saying the glittering cable car product will contradict the country’s conservation policy, as it will encourage mass tourism and become a major threat to the ecology of Mount Kilimanjaro.

“The cable car will be installed along the Machame route, which doubles as an irreplaceable birds migratory route…I am greatly worried over electric wires severely affecting the migration of birds,” Manyanga says.

Speaking on condition of anonymity, a tour operator accuses authorities of deliberately violating the law of the land by allowing a foreign investor to operate a cable car service on Mount Kilimanjaro.

“The law provides for exclusivity of Mount Kilimanjaro services to local operators, how come a foreign company is licensed to operate a cable car against it?” he queries.

Section 58(2) of the 2008 Tanzania Tourism Act No 11 clearly says mountain climbing or trekking registration will be issued to companies fully owned by Tanzanians.

Tour operators are also worried over the cable car harshly affecting revenues in a long run, owing to the service significantly reducing the length of stay from eight to one day.

“Assume all 50,000 tourists hiking Mount Kilimanjaro a year opt for the cable car, the national park will get $4.1 million fee, down from the current $55.3 million,” the tour operators say.

They fear the multiplier effect of the decline to the entrance, camping, rescue and crew fees will also be reflected on the national economy.

Chief Park Warden with Kilimanjaro National Park (KINAPA) Betty Looibok says the cable car is but only one of several additional tourism products embedded into Mount Kilimanjaro’s General Management Plan (GMP) in an effort to boost revenue.

“Cable car is for physically challenged persons and aged tourists who want to experience the thrill of climbing Mount Kilimanjaro up to Shira Plateau without wishing to summit,” she explains.

Looibok says the construction of the cable car will depend on the outcome of the environmental and social impact assessment study, which is currently underway.

Plans for the cable car service on the Kilimanjaro Mountain are not entirely new; as the discussions date back 1960s when they were not successful.

The feasibility plan in place will, however, bring the cable car one step closer to reality and make the mountain more accessible than it has been so far.

Some of the 50,000 tourists conquering Mount Kilimanjaro peaks a year though use challenging specialist routes, most of them opt for one of the six separate walking routes to the roof.

They generally take seven to eight days and are provided with accommodation in camps pitched around peaks for them to adjust to the altitude as they ascend.

Travel News | eTurboNews

IATA Report: Aviation continues to deliver solid

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The International Air Transport Association (IATA) announced global passenger traffic results for February 2019 showing total revenue passenger kilometers (RPKs) rose 5.3%, compared to February 2018. This was the slowest rate of growth in more than a year but still in line with long-term demand trends. Monthly capacity (available seat kilometers or ASKs) increased by 5.4%, and load factor slipped 0.1 percentage point to 80.6%, which is still high by historic standards.

“After January’s strong performance, we settled down a bit in February, in line with concerns about the broader economic outlook. Continuing trade tensions between the US and China, and unresolved uncertainty over Brexit are also weighing on the outlook for travel,” said Alexandre de Juniac, IATA’s Director General and CEO.

February 2019
(% year-on-year)		 World share1 RPK ASK PLF
(%-pt)2		 PLF
(level)3
Total Market 100.0% 5.3% 5.4% -0.1% 80.6%
Africa 2.1% 2.8% 1.1% 1.1% 70.4%
Asia Pacific 34.5% 6.3% 5.8% 0.4% 82.6%
Europe 26.7% 7.3% 7.7% -0.3% 81.5%
Latin America 5.1% 5.0% 5.5% -0.4% 81.3%
Middle East 9.2% -0.9% 2.7% -2.6% 72.6%
North America 22.4% 4.2% 3.9% 0.3% 80.8%

 

nternational Passenger Markets

February international passenger demand rose 4.6% compared to February 2018, which was a slowdown from 5.9% growth in January. Capacity climbed 5.1%, and load factor dropped 0.4 percentage point to 79.5%. Airlines in all regions but the Middle East showed traffic growth versus the year-ago period.

  • European carriers showed the strongest performance for a fifth consecutive month in February. Passenger demand increased by 7.6%, compared to a year ago, unchanged from January. Europe’s continuing strong performance provides a paradox given Brexit concerns and signs of a softer economic outlook. Capacity rose 8.0% and load factor slid 0.3 percentage point to 82.3%, which still was the highest among regions.
  • Asia-Pacific airlines’ February traffic rose 4.2% compared to the year-ago period, a substantial slowdown from the 7.2% increase recorded in January. The timing of the Lunar New Year holiday in the first week of February this year may have shifted some traffic to January. Capacity increased 4.7% and load factor dipped 0.3 percentage point to 81.0%.
  • Middle East carriers recorded a 0.8% traffic decline in February compared to a year ago, the only region to report a drop year-over-year. Capacity rose 2.9% and load factor fell 2.7 percentage points to 72.6%. Broadly speaking, passenger volumes of the region’s airlines have been moving sideways for the past 12 – 15 months.
  • North American airlines’ traffic climbed 4.2% in February, a decline from 5.4% growth in January. Capacity rose 2.9% and load factor was up 1.0 percentage point to 79.0%. Signs of softening economic activity at the end of 2018, in conjunction with the effects of ongoing tensions between the US and several of its trading partners, may be mitigated by the region’s low unemployment and generally sound economic backdrop.
  • Latin American airlines saw traffic rise 4.3% compared to February 2018, a slippage from 5.4% annual growth in January. Capacity increased by 5.6%, and load factor dropped 1.0 percentage point to 81.4%. Renewed economic and political uncertainties in a number of key countries may weigh upon air transport demand in coming months.
  • African airlines experienced a 2.5% rise in traffic for the month compared to the year-ago period, down from 5.1% growth in January. Concerns over conditions in the largest economies are contributing to the slowdown. Capacity rose 0.3%, and load factor climbed 1.5 percentage points to 69.7%.

Domestic Passenger Markets

Domestic travel demand rose 6.4% in February compared to February 2018, down from 7.4% annual growth in January. All markets except Australia reported increases in traffic, with India recording its 54th consecutive month of double-digit percentage growth. Domestic capacity climbed 5.8%, and load factor edged up 0.5 percentage point to 82.4%.

 

  • China topped the growth chart for a second month in a row, with RPKs up a strong 11.4% year-on-year, although this was down from 14.5% growth in January compared to a year ago.
  • Brazil’s domestic traffic increased 5.8% in February, compared to a year ago, the fastest pace in more than six months and more than double the 2.6% year-over-year rise for January. Brazil was the only domestic market tracked by IATA to show an increase in the year-on-year growth rate compared to January 2019.

The Bottom Line

“While overall economic confidence appears to be softening, aviation continues to deliver solid results, helping to sustain global commerce and the movement of people. The Brexit deadline has come and gone with no separation agreement, but with vital air connectivity between the UK and the Continent maintained for the present. Temporary measures, however, are no substitute for a comprehensive Brexit package that will ensure that the Business of Freedom is able to play its vital role in contributing to the well-being of the region—and the world,” said de Juniac.

Read the full February Passenger Traffic Analysis  (pdf)

Travel News | eTurboNews

Air freight demand still spiraling down

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For the fourth consecutive month, global air freight performance has reported a negative year-on-year growth and the worst performance in the last three years. The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight ton kilometers (FTKs), decreased 4.7% in February 2019, compared to the same period in 2018.

Freight capacity, measured in available freight ton kilometers (AFTKs), rose by 2.7% year-on-year in February 2019. This was the twelfth month in a row that capacity growth outstripped demand growth.

Demand for air cargo continues to face significant headwinds:

  • Trade tensions weigh on the industry;
  • Global economic activity and consumer confidence have weakened;
  • And the Purchasing Managers Index (PMI) for manufacturing and export orders has indicated falling global export orders since September 2018.

“Cargo is in the doldrums with smaller volumes being shipped over the last four months than a year ago. And with order books weakening, consumer confidence deteriorating and trade tensions hanging over the industry, it is difficult to see an early turnaround. The industry is adapting to new markets for e-commerce and special cargo shipments. But the bigger challenge is trade is slowing. Governments need to realize the damage being done by protectionist measures. Nobody wins a trade war. We all do better when borders are open to people and to trade,” said Alexandre de Juniac, IATA’s Director General and CEO.

 

Regional Performance

All regions reported a contraction in year-on-year demand growth in February 2019 except for Latin America.

  • Asia-Pacific airlines saw demand for air freight contract by 11.6% in February 2019, compared to the same period in 2018. Weaker manufacturing conditions for exporters in the region, ongoing trade tensions and a slowing of the Chinese economy impacted the market. Capacity decreased by 3.7%.

 

  • North American airlines saw demand contract by 0.7% in February 2019, compared to the same period a year earlier. This was the first month of negative year-on-year growth recorded since mid-2016, reflecting the sharp fall in trade with China. North American carriers have benefited from the strength of the US economy and consumer spending over the past year. Capacity increased by 7.1%.

 

  • European airlines experienced a contraction in freight demand of 1.0% in February 2019 compared to a year ago. The decline is consistent with weaker manufacturing conditions for exporters in Germany, one of Europe’s major economies. Trade tensions and uncertainty over Brexit also contributed to a weakening in demand. Capacity increased by 4.0% year-on-year.

 

  • Middle Eastern airlines’ freight volumes contracted 1.6% in February 2019 compared to the year-ago period. Capacity increased by 3.1%. A clear downward trend in seasonally-adjusted international air cargo demand is now evident with weakening trade to/from North America contributing to the decrease.

 

  • Latin American airlines posted the fastest growth of any region in February 2019 versus last year with demand up 2.8%. Despite the economic uncertainty in the region, a number of key markets are performing strongly. Seasonally-adjusted international freight demand achieved growth for the first time in six months. Capacity increased by 14.1%.

 

  • African carriers saw freight demand decrease by 8.5% in February 2019, compared to the same month in 2018. Seasonally-adjusted international freight volumes are lower than their peak in mid-2017; despite this, they are still 25% higher than their most recent trough in late-2015. Capacity grew 6.8% year-on-year.

View full February freight results (pdf).

Travel News | eTurboNews

Number of Hawaii visitors up but spending down

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Visitors to the Hawaiian Islands spent a total of $1.39 billion in February 2019, a decrease of 2.7 percent compared to February 20181, according to preliminary statistics released today by the Hawaii Tourism Authority. This is another dip following the 3.8 decrease in January.

In February, visitor spending increased from the U.S. West (+4.7% to $503.3 million) but declined from U.S. East (-6.7% to $370.9 million), Japan (-0.8% to $170.1 million), Canada (-0.7% to $150.7 million) and All Other International Markets (-15.3% to $188.7 million) compared to a year ago.

On a statewide level, average daily visitor spending was down slightly (-0.9% to $200 per person) in February year-over-year. Visitors from Japan (+3.3%), U.S. West (+1.2%) and All Other International Markets (+0.7%) spent more per day while visitors from U.S. East (-4.1%) and Canada (-1.0%) spent less.

A total of 782,584 visitors (+0.5%) came to Hawaii in February 2019, up slightly from the same month last year. Arrivals by air service (+0.3% to 766,293) were comparable to last February while arrivals by cruise ships (+12.1% to 16,291) increased. However, total visitor days2 declined (-1.9%) versus February 2018 due to a shorter average length of stay by visitors from most markets.

The average daily census3 of total visitors in the Hawaiian Islands on any given day in February was 248,244, down 1.9 percent compared to February last year. Arrivals by air service realized growth from U.S. West (+6.5%), Canada (+2.5%) and Japan (+1.1%) which offset decreases from U.S. East (-0.9%) and All Other International Markets (-17.2%).

Visitor spending on Oahu decreased (-1.6% to $613.0 million) while visitor arrivals (456,820) were flat compared to last February. Maui recorded increases in both visitor spending (+1.2% to $413.0 million) and visitor arrivals (+1.5% to 220,801). The island of Hawaii saw declines in visitor spending (-17.5% to $192.3 million) and visitor arrivals (-14.8% to 137,502). Visitor spending increased on Kauai (+4.7% to $153.5 million) while visitor arrivals were similar (+0.2% to 104,167) to February 2018.

A total of 1,010,961 trans-Pacific air seats serviced the Hawaiian Islands in February, up slightly (+0.5%) from a year ago. Growth in air seats from Canada (+10.9%), Japan (+6.3%), Oceania (+1.8%), U.S. West (+0.5%) and U.S. East (+0.5%) offset declines from Other Asia Markets (-25.1%).

Year-to-Date 2019

Through the first two months of 2019, visitor spending declined (-2.4% to $3.01 billion) compared to the same period last year. Visitor arrivals increased (+1.8% to 1,603,205) but a shorter length of stay (-1.8% to 9.43 days) resulted in no growth in visitor days. Average daily spending (-2.4% to $199 per person) was lower compared to a year ago.

Visitor spending decreased from U.S. West (-0.8% to $1.06 billion), U.S. East (-1.8% to $832.5 million), Japan (-3.8% to $349.6 million), Canada (-0.4% to $318.3 million) and All Other International markets (-7.5% to $443.2 million).

Visitor arrivals increased from U.S. West (+5.5% to 631,064), U.S. East (+0.7% to 356,943), Japan (+3.3% to 251,488) and Canada (+0.7% to 133,915), but declined from All Other International Markets (-7.9% to 201,981).

Other Highlights:

U.S. West: Visitor arrivals from the Pacific region rose 7.6 percent in February compared to the previous year, with more visitors from Alaska (+13.7%), California (+8.4%), Washington (+6.7%) and Oregon (+2.9%). Arrivals from the Mountain region were up 3.2 percent in February with growth from Arizona (+9.5%) and Nevada (+8.5%), offsetting declines from Utah (-5.7%) and Colorado (-1.3%). Through the first two months, arrivals from the Pacific (+7.4%) and Mountain (+1.8%) regions increased versus the same period last year.

Through February 2019, average daily visitor spending dropped to $182 per person (-2.4%) compared to the same period last year, largely due to decreases in transportation and food and beverage expenses.

U.S. East: Growth in February visitor arrivals from the East South Central (+1.6%) and East North Central (+0.6%) regions were offset by decreases from the West South Central (-4.1%), South Atlantic (-4.0%), New England (-2.4%) and Mid Atlantic (-0.7%) regions compared to a year ago. For the first two months of 2019, arrivals were up from the East South Central (+7.2%), West North Central (+2.6%) and South Atlantic (+0.7%) regions.

For the first two months of 2019, average daily visitor spending declined to $214 per person (-1.4%), largely due to a decline in transportation expenses.

Japan: In February, more visitors stayed in hotels (+5.2%) while stays in condominiums (-16.1%) and timeshares (-7.6%) decreased compared to a year ago.

For the first two months of 2019, average daily visitor spending declined to $238 per person (-4.4%), primarily due to lower lodging and transportation expenses.

Canada: In February, less visitors stayed in condominiums (-7.3%) and hotels (-1.6%). Stays in rental homes (+23.7%) and timeshares (+4.4%) increased from a year ago.

For the first two months of 2019, average daily visitor spending decreased (–0.7% to $177 per person) compared to the same period last year, due to lower shopping as well as entertainment and recreation expenses.

MCI: A total of 57,043 visitors came to the Hawaiian Islands for meetings, conventions and incentives (MCI) in February, an increase of 10.4 percent from last year. More visitors came to attend conventions (+18.6%) and corporate meetings (+2.2%) but fewer traveled on incentive trips (-1.0%). Contributing to the growth in convention visitors was the 2019 International Stroke Conference, held at the Hawaii Convention Center, which brought nearly 6,000 delegates. Through the first two months, total MCI visitors grew (+10.5% to 116,310) compared to the same period last year.

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WOW Air shut down: Thousands stranded

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This is the email WOW Air passengers received after the airline shut down and flights were canceled: Dear WOW air guest, thank you for contacting us. We regret to announce that WOW air has ceased operation, and all flights have been cancelled. Further information can be found at WOW Air.

Following the news that WOW Air has ceased operations after failed negotiations to save it, leaving thousands of passengers stranded, Ralph Hollister, Associate Travel & Tourism Analyst at GlobalData, a leading data and analytics company, offers his view:

“The closures of smaller sized airlines such as WOW Air come as little surprise. Even major airlines such as Ryanair with significantly higher profit margins are suffering with the issues at the root of these closures – high fuel prices and overcapacity.

“With finances having already been in decline for a number of months, WOW had to reduce its fleet from 24 to 11, along with reducing the number of destinations available to customers.

“Overcapacity is a factor which can be managed unlike fuel costs, but timeliness is critical and WOW acted too late.

“Smaller airlines need to be more sensitive to changes in the market. Being one step ahead in terms of potential future decreases in demand for specific routes will enable airlines to decrease flight frequency proactively.

“This will decrease the amount of empty seats and most importantly, keep them afloat in a highly competitive industry.” 

 

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Hawaii Tourism: Hawaii hotels’ occupancy, revenue down in February 2019

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In February 2019, Hawaii hotels statewide reported decreases in both average daily rate (ADR) and occupancy, which resulted in lower revenue per available room (RevPAR) compared to February 2018.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR declined to $242 (-4.2%), with ADR of $290 (-1.2%) and occupancy of 83.4 percent (-2.6 percentage points) (Figure 1) in February.

HTA’s Tourism Research Division issued the report’s findings utilizing data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Islands.

In February, Hawaii hotel room revenues fell by 5.6 percent to $360.0 million. There were more than 22,000 fewer available room nights (-1.5%) in February and approximately 58,000 fewer occupied room nights (-4.5%) compared to a year ago (Figure 2). Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during February.

All classes of Hawaii hotel properties statewide reported RevPAR declines in February, except Upper Midscale Class properties ($149, +2.5%). Luxury Class properties reported RevPAR of $447 (-6.2%) with ADR of $574 (-2.2%) and occupancy of 77.9 percent
(-3.4 percentage points). At the other end of the price scale, Midscale & Economy Class hotels reported RevPAR of $154
 (-10.3%) with ADR of $181 (-6.8%) and occupancy of 85.3 percent (-3.4 percentage points).

Among Hawaii’s four island counties, only Oahu hotels reported ADR growth for February ($237, +1.2%). This increase was counter-balanced by a 1.0 percentage point decrease in occupancy to 86.4 percent, resulting in no RevPAR growth in February ($205) compared to a year ago.

Maui County hotels reported a decline in RevPAR to $337 (-4.5%) in February but led the state overall. Both ADR ($420, -2.9%) and occupancy (80.3, -1.3 percentage points) decreased year-over-year.

Hotels on the island of Hawaii reported a drop in RevPAR to $233 (-13.5%) in February, with lower ADR ($285, -5.8%) and occupancy (81.8%, -7.3 percentage points) compared to February 2018.

Kauai hotels’ RevPAR fell to $230 (-12.3%) in February, with declines in both ADR to $306 (-1.3%) and occupancy to 75.1 percent (-9.4 percentage points).

All of Hawaii’s resort regions reported RevPAR and occupancy losses in February. Only Waikiki properties were able to raise ADR for the month ($232, +1.0%) compared to a year ago.

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