Alliance fares generate $850m in 2008
Members of the oneworld airline alliance saw sales revenues jump 25% to $850m in 2008 year-on-year, according to figures released today (June 8).
Oneworld said eight million passengers had travelled on member airlines, which include British Airways, Cathay Pacific and Qantas. Interline revenues also rose 10% as a result to $2.4bn.
The alliance said the record results from sales activities had ended its first decade "on a new high."
Business demand still appears to be strong, oneworld said. Registrations for its businessflyer corporate product, aimed at small and medium enterprises (SMEs), rose 12% to 10,000 last year. Oneworld said revenues from the business sector in France had more than doubled.
"Yields from oneworld sales overall also remained solid, with a record 75% of revenues generated by the alliance's fares coming from tickets sold for travel in premium cabins," oneworld said.
But BA and Iberia, both oneworld members, have reported losses as a result of falling demand for business and first class seats. Both airlines rely heavily on demand for their full-service products, which has fallen as passengers opt for cheaper alternatives.
Oneworld members suffered a combined net loss of $1.7bn last year, its first loss since 2003. But oneworld compared to losses suffered by rival alliances Star and SkyTeam of $8.8bn and $13.3bn respectively.
Oneworld managing partner John McCulloch said: "The results from the past year and from oneworld's first decade as a whole make abundantly clear the growing value the alliance has added to all its key stakeholders.
"In an industry where profit margins are thin at best - let alone at times of global economic downturn - revenues and cost savings from oneworld have made an increasingly important contribution to our member airlines' financial standings.
"As we enter our second decade, the alliance's strategy remains the same - focussing on the quality rather than quantity of our member airlines and on adding value for our customers and shareholders."