HOT TOPIC Major sporting events
Fifa World Cup 2014: An own goal for Brazil?
Number of carriers
Number of % growth carriers year-on-year
Brazil saw an overall 4.2% loss in the number of flights in June and July 2014
While the Olympics are not delivering on a promised boost to the hosts’ aviation markets, the Fifa World Cup also had a negative impact on Brazil’s aviation market in 2014 Analysis of the event supplied by the country’s National
Civil Aviation Authority (Anac) shows depressed demand drove down prices. In preparation for the Fifa World Cup 2014, Brazil’s National Civil
Aviation Authority approved a special network to meet the demand during the period. However, when it came to domestic flights, demand dropped
during the event by 6.4% year-on-year, much more than the average monthly fall of 2.6% seen in the year leading up to the event. This was in stark contrast to the situation with international
flights, which saw an average increase of 4.2% each month in the same period, peaking with an increase of 12.8% when the actual tournament was being staged. But it was not enough to make up for the domestic flights loss,
meaning overall there was a 4.2% reduction in the number of flights during the World Cup when it took place in June and July 2014. The fall in demand for domestic flights was unsurprisingly
reflected in ticket pricing to and from host cities and which fell to an average of $90.23 between October 2013 and July 2014 from an average of $92.97 throughout the rest of 2014 and $97.86 in 2013. Most airline seats sold in the period of the World Cup (63%)
were sold at fares below $84.42. Only 0.1% were sold at more than $422.09. The lower rates of $28.15 represented 17.9% of the total. Despite the fall in pricing, demand in terms of revenue passenger
kilometres (RPK) increased by 12.5%, and the offer in terms of available seat kilometres (ASK) rose by 7.7% compared with the same period in 2013. This was significantly higher than their average growth in the 12 months preceding the event – 4.9% and 2.9%, respectively. The growth rate of demand for international air transport in RPK also saw significant acceleration during the tournament as it increased to 21.8% year-on-year. The strong growth was again not reflected in the domestic
market, where demand recorded strong deceleration in the same period. During the tournament, there was an average growth of 0.71%, compared with an average monthly growth of 4.6% recorded in the 12 months leading up to the event. When it comes to the number of people in the skies during the
event, paid passengers grew by 4.9% overall, exceeding 11.5 million, thanks to the 26.7% increase in international flights.
42 ISSUE 4 ROUTES NEWS 2016
routesonline.com
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
59 60 58 59 63 70 69 67 84 78 81
- 1.7%
-3.3% 1.7% 6.8%
11.1% -1.4% -2.9% 25.4% -7.1% 3.8%
Number of % growth carriers year-on-year
53 50 56 64 65 74 71 73 78 83 80
-
-5.7% 12.0% 14.3% 1.6%
13.8% -4.1% 2.8% 6.8% 6.4%
-3.6%
Number of % growth carriers year-on-year
181 161 162 156 149 145 133 137 138 131
-
-11.0% 0.6%
-3.7% -4.5% -2.7% -8.3% 3.0% 0.7%
-5.1%
Number of % growth carriers year-on-year
2011 2012 2013 2014 2015 2016
28 29 30 34 28 33
-
3.6% 3.4%
13.3% -17.6% 17.9%
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