Dora The Explorer Paper

Chilean Air Market Analysis in March 2011

By Ricardo J. Delpiano

In its monthly report, Civil Aeronautics Board gave in late last week the official results for the carriage of passengers and cargo in March, as well as the cumulative result in the first quarter of 2011. As expected, in the first three months were mobilized by air 3,468,703 passengers in domestic and international flights, which compared with the same period last year, representing growth of 29.7%. This meant a new record for the Chilean aviation, which was achieved by combining a number of factors such as low exchange rate and the best economic situation, helped also by the trade policies developed by the airlines. Even before the summer season, these indicators and the last of the reserves were expecting a good summer.

In the month of March for his part, transported 1,053,868 passengers on domestic and international flights, which compared with the same period of 2010, a growth of 62.9%. Separated markets, domestic passenger traffic grew by 67.3%, while international grew 58.1%. The significant difference between 2010 and 2011, answered, in addition to the above factors, the drop that air transport de pasajeros experimento en marzo del año pasado consecuencia del terremoto de febrero 2010.

Tráfico internacional de pasajeros

En marzo fueron transportados 495.190 pasajeros con origen o destino internacional con un alza del 58,1% en comparación con igual periodo del año anterior. En el acumulado a marzo, se movilizaron por avión 1.622.809 pasajeros, anotándose un crecimiento del 26,8% en comparación con marzo 2010.

LAN Airlines lideró nuevamente el mercado con un 51% de participación y un crecimiento de 65,8% transportando 252.639 pasajeros. En segundo TAM Airlines-place was at 5.4%, followed by 4.6% American Airlines, COPA Airlines with 3.7% and 3.6% Sky Airline. Accumulated LAN Airlines reported a 48% share, followed by TAM by 5.1%, Sky Airline in third place with 4.7%, 4.5% American Airlines and Copa Airlines with 3.5%. For the second consecutive month, Sky Airline achieves located within the top five in this segment, thanks to the international expansion of routes that the company has made, as well as through the summer charter operation. The rest of the companies maintained similar levels of market share.

During the first months of the year saw the entry of a new entrant but increased frequency of some operators among which is the second day of TACA flight to Santiago and the start of the flights of this company to Antofagasta .

table showing international passenger traffic for March and accrued. Source: JAC

domestic passenger traffic

On domestic routes, were transported 558,678 passengers during the month of March with a 67.3% growth compared to the same month 2010. In the aggregate, 1,845,894 passengers were mobilized in Chile with a growth of 32.4% compared to first quarter 2010.

Regarding airlines, LAN (LAN Chile and LAN Express) had a turnout of 74.1% with a growth of 133%, mobilizing 413,926 passengers. In the year to March, LAN reported a 75.5% share with a growth of 50.6%. Sky Airline was second with 20.9% and 72% growth, while in the first three months, its share was 19.3%. PAL Airlines continued to increase its share reaching 4.5% of the domestic market and registering the highest growth of all three with a 135.6% in the month of March, PAL has accumulated at 4.7% with significant growth of 138.6%.

Result domestic traffic by airlines to March 2010. Source: JAC

Cargo traffic

transport cargo during the month of March I carried 28 591 tonnes in domestic and international flights, which compared with March 2010 shows an increase 6.3%. In the first three months moved 76,650 tons with a growth of 8% as period 2010.

Considering only international routes, the airline carried 26,171 tons cargo to or from international growth of 5.7%. March continues the trend of previous months, registering in the first quarter increased 8.9% to 69,967 tonnes transported.

For its part, the domestic freight moved by air 2420 tonnes with a fall of 13.7% compared with March 2010. In the first quarter drop was only 1% to 6,683 tonnes compared to the same period last year. In this segment, highlights the significant increase in PAL activity by Airlines on the other companies, thanks to the transport of goods which the company does in the north through the container seat mode.

Result of cargo on international routes in March 2011. Source: JAC .