Aruba Airport Authority N.V. reports positive 3rd Quarter 2009 traffic results

Aruba Airport Authority N.V. reports positive 3rd Quarter 2009 traffic results - Including new service and capacity increase

ORANJESTAD - With the summer months comprising the 3rd Quarter period, airlines are indicating overall more passengers per flight as capacity and airfares were reduced. The industry remains very volatile and according to IATA, even though demand for air travel continues to improve, profitability remains ever distant. Aruba Airport Authority N.V. (AAA) 3rd quarter results are reflective of the overall industry reports as both commercial revenue generating passengers (RGP) and air service capacity have increased during the third quarter of 2009.

RGP figures for commercial passengers and flights were up by 2.8% and 1.8% respectively compared to the third quarter of 2009. The following graph illustrates the monthly performance for the third quarter of 2009 compared to 2008 for commercial traffic.

According to the International Air Transport Association (IATA) air fares have stabilized, but at profitless levels. Meanwhile cost pressures are mounting from reduced aircraft utilization and rising oil prices. The industry according to IATA is 'not out of the woods yet'. US airline capacity changes for Aruba during the third quarter of 2009 were most notable from Delta Airlines, USAirways and JetBlue Airways growing capacity compared to 2008 with 60.0%, 24.8% and 11.8% respectively. In addition, AirTran Airways announced weekly service to Aruba from Atlanta as of December 2009 and Orlando as of February 2010 complimenting air service from the United States to Aruba. With the announcement of Orlando, Aruba has obtained its 13th US gateway a terrific accomplishment for the destination.

As previously indicated booking patterns remain rather short term as consumers are price sensitive and continue to influence the performance of the main tourism market. Airlines have reduced capacity and airfares which creates more passengers on the aircraft but does not reduce the fixed airline costs. The following graph also reflects how effective the various markets are in matching aircraft capacity with demand during the third quarter of 2009 compared to 2008.

'Traffic figures for the 3rd Quarter sound promising as each individual month showed signs of improvement' said Peter Steinmetz, Managing Director AAA. 'Retention of air service, the addition of air service from AirTran Airways and the change of equipment by Copa Airlines are important indicators that our strategies continue to generating positive results. In addition, our marketing efforts have been recognized once again during The World Route Forum and are reflections of Aruba's strong and prominent presence in the world of Tourism and Aviation'.