The Revenue Generated by UK Airlines is Estimated to Have Reached GBP 17.32bn in...

The Revenue Generated by UK Airlines is Estimated to Have Reached GBP 17.32bn in 2007

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/5b5b74/airlines_market_re)
has announced the addition of the "Airlines Market Report 2008" report
to their offering.

The revenue generated by UK airlines is estimated to have reached
GBP 17.32bn in 2007, a 4.1% increase on 2006. The number of passengers
carried by UK airlines increased by 3%, to 131.2 million in 2007, and
the number of seat kilometres (km) used rose by 4.7%, to 315.87
billion km.

Air-passenger transport is undertaken on both scheduled and
non-scheduled services. The scheduled sector, which includes low-cost
carrier services, is the market's largest and fastest-growing sector.
Non-scheduled flights, which include holiday charter flight operator
services, have generally been contracting for a number of years -- a
result of the growing trend towards independent travel, as opposed to
package or

inclusive tours.

The rising price of oil is presenting the airline sector with a
major challenge. Between 2007 and 2008, the cost of jet fuel increased
by around 80%. Oil accounts for a third or more of most airlines'
operating costs, therefore oil price increases are impacting
significantly on their profitability. Between January and April 2008,
up to 12 airlines around the world -- including the US-owned Eos
Airlines, which operated flights between London Stansted and JFK in
New York, and Oasis Hong Kong Airlines, which operated scheduled
services to Gatwick from its Hong Kong base -- ceased trading. The
Isle of Man-based airline EuroManx also ceased trading in May 2008,
and further airline closures during the rest of the year are expected.
Early in June 2008, Ryanair announced that, if oil prices remained at
their current rate, the company would only break even in the upcoming
financial year.

The EU-US Open Skies Agreement, which marks the start of a new era
in transatlantic aviation, came into effect on 30th March 2008. The
agreement allows any airline of the EU and any airline of the US to
fly between any two points in the regions. US airlines are also
allowed to fly between points in the EU. The agreement removes
restrictions on routes, prices or the number of weekly flights and
also establishes closer co-operation between the EU and the US in
areas such as security and the environment.

Although, we forecast long-term growth in demand for air
transport, the rate of increase in the immediate term (2008 and 2009)
could be affected by the general slowdown in the economy. The growth
that will be achieved between 2008 and 2012 will, once again, come
from the expansion of the low-cost scheduled services sector, while
passenger numbers on non-scheduled flights are projected to slide
further, as consumers continue to favour independently arranged
travel. The problems the industry will continue to encounter up to
2012 include increasing oil prices, government taxation on air travel
and rising airport charges.

Key Topics Covered:

-- Market Definition

-- Market Size

-- Industry Background

-- Competitor Analysis

-- Strengths, Weaknesses, Opportunities and Threats

-- Buying Behaviour

-- Current Issues

-- The Global Market

-- Forecasts

-- Company Profiles

-- Further Sources

Companies Mentioned:

-- British Airways Plc

-- British Midland Airways Ltd

-- Easyjet Airline Company Ltd

-- Flybe Group Ltd

-- First Choice Airways Ltd

-- Monarch Airlines Ltd

-- Thomas Cook Airlines Uk Ltd

-- Thomsonfly Ltd

-- Virgin Atlantic Airways Ltd

For more information visit
http://www.researchandmarkets.com/research/5b5b74/airlines_market_re

Research and Markets
Laura Wood, Senior Manager
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
press@researchandmarkets.com

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