SCQ83
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Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Mon Aug 13, 2018 3:05 pm

An interesting month in summer peak season (July) in Spain.

http://www.aena.es/csee/ccurl/332/558/0 ... o_2018.pdf

- Barcelona's growth has massively slowed down, with only a +2.5% growth. That is particularly interesting because BCN is an inbound holiday market, so more seasonal in nature than MAD. Mallorca has also scored a low +1.9% growth.

- Some holiday airports such as Málaga, Alicante, Ibiza, Lanzarote, Menorca, Fuerteventura or Almería have posted small losses. In the case of AGP, this is the first monthly loss after more than 5 years of continuous growth. It seems 2017 has been "peak holiday season" in Spain and things are cooling down with the recovery of Turkey, Egypt and Tunisia.

On a positive note:

- Madrid (+8.7% over a record July 2017) continues booming. July 2018 in MAD has been the busiest month ever for an airport in Spain.
MAD will soon surpass the +60 million year mark, entering that exclusive European club (only with LHR, CDG, FRA, AMS and IST).

- Sevilla (+23,0%) and Valencia (+10,1%) continue in their positive track with many months of double digit growth.

What are your thoughts on the immediate growth of holiday airports (BCN, PMI, AGP, ALC, IBZ, FUE, ACE, LPA, TFS/TFN...)? It seems that they have reached their peak so I wouldn't be surprised to see some cancellations for S19. On the other hand, the current trend shows that Madrid is by the far the largest economic center in Southern Europe, decoupling itself from more secondary destinations like BCN, MIL or ROM.
 
mutu
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Mon Aug 13, 2018 3:20 pm

was there not a lot of weather and ATC disruption in July? These disruptions add up especially to the "tourist" destinations which can be given a lower priority. And the extremely hot weather across all of Europe has resulted in a lot of usual late bookings staying at home.

This may just be an unrepresentative month rather than indicative of any real trend?
 
SCQ83
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Mon Aug 13, 2018 3:22 pm

It is the first month in a few years where a good number of holiday airports are with losses (albeit small).

As for ATC disruptions, Ryanair strikes and hot weather, Madrid was also affected yet PAX numbers are booming.
 
Begues
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Mon Aug 13, 2018 3:41 pm

SCQ83 wrote:
An interesting month in summer peak season (July) in Spain.

http://www.aena.es/csee/ccurl/332/558/0 ... o_2018.pdf

- Barcelona's growth has massively slowed down, with only a +2.5% growth. That is particularly interesting because BCN is an inbound holiday market, so more seasonal in nature than MAD. Mallorca has also scored a low +1.9% growth.

- Some holiday airports such as Málaga, Alicante, Ibiza, Lanzarote, Menorca, Fuerteventura or Almería have posted small losses. In the case of AGP, this is the first monthly loss after more than 5 years of continuous growth. It seems 2017 has been "peak holiday season" in Spain and things are cooling down with the recovery of Turkey, Egypt and Tunisia.

On a positive note:

- Madrid (+8.7% over a record July 2017) continues booming. July 2018 in MAD has been the busiest month ever for an airport in Spain.
MAD will soon surpass the +60 million year mark, entering that exclusive European club (only with LHR, CDG, FRA, AMS and IST).

- Sevilla (+23,0%) and Valencia (+10,1%) continue in their positive track with many months of double digit growth.

What are your thoughts on the immediate growth of holiday airports (BCN, PMI, AGP, ALC, IBZ, FUE, ACE, LPA, TFS/TFN...)? It seems that they have reached their peak so I wouldn't be surprised to see some cancellations for S19. On the other hand, the current trend shows that Madrid is by the far the largest economic center in Southern Europe, decoupling itself from more secondary destinations like BCN, MIL or ROM.



Spain will loose tourists to cheaper markets, it is inevitable and probably needed as many spanish tourist destinations are saturated well beyond any reason. Bulgaria is a growing sun holiday tourist market and much cheaper than Spain, Greece is finally recovering and will offload some of the overload Spain is suffering. Eastern European cities are becoming much more accessible thanks to Wizz Air and they are much cheaper than any spanish city destination. It took Barcelona about 15 years (1990 to 2005) to go from an anonymous city nobody had ever heard of to becoming the world renowned tourist destination it is today. We can apply the same timeframe to cities like Budapest, Bucarest and Sofia, three future city destinations that will grow a lot in the coming decade.


Madrid is growing because Spain is recovering from the finacial meltdown it suffered the last 10 years, now begin another cycle of construction crane driven economic boom that will bust in 10 to 15 years time. It's the curse of Spain, an endles boom bust economy that can never grow out of the crane addiction.
 
SCQ83
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Mon Aug 13, 2018 5:40 pm

Greece is not recovering as a tourist destination. Greece has been breaking records for a few years now. The countries affecting Spain are the recovering Turkey/Tunisia/Egypt and also some other countries in records like Morocco, Portugal, Greece or Croatia. Bulgaria is a tiny holiday market.

What is interesting about July 2018 is that 50.6% of the total AENA PAX growth was due to Madrid. Also the PAX difference between MAD and BCN has multiplied eightfold compared to July 2017.

In a way is quite similar to what is happening in Spain as a whole. Economic and demographic growth is hyper-concentrating in Madrid, which is becoming the undisputed economic center of the Iberian Peninsula. Naturally passenger growth is focused there.
 
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OA260
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Mon Aug 13, 2018 5:54 pm

SCQ83 wrote:
The countries affecting Spain are the recovering Turkey/Tunisia/Egypt and also some other countries in records like Morocco, Portugal, Greece or Croatia. .


Spot on and exactly what people involved in the tourism sector in the Canaries are telling me. Good news though is this Winter Euro Wings are opening up two new routes in Canaries and looking to open 3-5 more. A few other operators will run charters on OS SN SK etc... Also cruise ship arrivals into ACE are 18% up year on year which is a good upward trend. Arrivals from Eastern Europe is a growth area to watch.
 
SCQ83
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Mon Aug 13, 2018 6:08 pm

OA260 wrote:
Spot on and exactly what people involved in the tourism sector in the Canaries are telling me. Good news though is this Winter Euro Wings are opening up two new routes in Canaries and looking to open 3-5 more. A few other operators will run charters on OS SN SK etc... Also cruise ship arrivals into ACE are 18% up year on year which is a good upward trend. Arrivals from Eastern Europe is a growth area to watch.


But Canarias in winter is very specific market with little competition (Cape Verde, Sharm El Sheikh, Dubai, now Eilat or Aqaba; and of course Florida, South Africa or Thailand but that is long-haul - a completely different story -). The name of the game is Mediterranean summer and Spain is losing it. In any case those "people involved in the tourism sector" are the ones to blame, particularly for pricing their hotel rooms in ugly Benidorm at caldera-view room prices in Santorini :).

I suspect the fall in PAX is not higher because carriers have literally being giving away tickets this summer to Spain, so that generates additional traffic (e.g. a lot of people have 2nd homes in Spain so really not need for a hotel; friends or relatives can visit). Look at Laudamotion (Ryanair) prices between Germany and PMI; it is a continuous 29.99 EUR flash sale for July and August. Completely unsustainable.
 
Begues
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Mon Aug 13, 2018 6:51 pm

SCQ83 wrote:
Greece is not recovering as a tourist destination. Greece has been breaking records for a few years now. The countries affecting Spain are the recovering Turkey/Tunisia/Egypt and also some other countries in records like Morocco, Portugal, Greece or Croatia. Bulgaria is a tiny holiday market.


Exactly coinciding with the explosion of tourism to Spain in 2015, 2016 and 2017, tourism growth in Greece droped to almost nothing, so yea, it is definitely recovering.

https://data.worldbank.org/indicator/ST ... view=chart

And Bulgaria is a fast growing tourist destination in Europe, in fact over a million new tourist year over year in 2016, 2017 and 2018. Tunisia is now actually a smaller tourist destination than Bulgaria and the trend is increasing in favor of Bulgaria.

https://data.worldbank.org/indicator/ST ... view=chart.


SCQ83 wrote:
In a way is quite similar to what is happening in Spain as a whole. Economic and demographic growth is hyper-concentrating in Madrid, which is becoming the undisputed economic center of the Iberian Peninsula. Naturally passenger growth is focused there.



The complete and total failure of successive spanish govenments to diversify the nations economy, making it even more dependant on construction crane addiction. But hey, if people voluntarily move to live in the litteral gas chamber that is Madrid in winter, I guess they have a fettish for breathing poison.
 
SCQ83
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Mon Aug 13, 2018 7:29 pm

Begues wrote:
SCQ83 wrote:
Greece is not recovering as a tourist destination. Greece has been breaking records for a few years now. The countries affecting Spain are the recovering Turkey/Tunisia/Egypt and also some other countries in records like Morocco, Portugal, Greece or Croatia. Bulgaria is a tiny holiday market.


Exactly coinciding with the explosion of tourism to Spain in 2015, 2016 and 2017, tourism growth in Greece droped to almost nothing, so yea, it is definitely recovering.

https://data.worldbank.org/indicator/ST ... view=chart.


Almost nothing? From 2012 to 2017 (Spanish tourism boom did not start in 2015; but in 2011-12 with the Arab Spring and the European recovery after the WFC), tourism in Greece grew at a comparable rate than Spain.

Begues wrote:
And Bulgaria is a fast growing tourist destination in Europe, in fact over a million new tourist year over year in 2016, 2017 and 2018. Tunisia is now actually a smaller tourist destination than Bulgaria and the trend is increasing in favor of Bulgaria.

https://data.worldbank.org/indicator/ST ... view=chart.


You are comparing apples and oranges. Most "tourists" to Bulgaria come from nearby countries: Romania, Greece and Turkey. Those are not countries Spain draws tourists from to fill their beach hotels. There are fewer British tourists in Bulgaria than Macedonian tourists.

http://www.nsi.bg/en/content/7058/arriv ... try-origin

Tunisia has more French, British and Russian tourists and those are critical markets for Spain.

SCQ83 wrote:
The complete and total failure of successive spanish govenments to diversify the nations economy, making it even more dependant on construction crane addiction.


Construction has a much lower % of GDP in 2018 than in 2008.

SCQ83 wrote:
But hey, if people voluntarily move to live in the litteral gas chamber that is Madrid in winter, I guess they have a fettish for breathing poison.


:lol: Madrid is among the less polluted major cities in Western Europe.

https://www.telegraph.co.uk/travel/gall ... th/madrid/
 
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J4YC3
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Mon Aug 13, 2018 8:06 pm

Long-time lurker, first-time poster here. OP constantly talking smack about the other Spanish airports to aggrandise MAD is getting really annoying, so here I am, to say that this

SCQ83 wrote:
In a way is quite similar to what is happening in Spain as a whole. Economic and demographic growth is hyper-concentrating in Madrid, which is becoming the undisputed economic center of the Iberian Peninsula. Naturally passenger growth is focused there.


is just plainly untrue. Madrid's GDP only started growing above the Spanish average in 2015, and from then on it's just been by 0.2% in 2015, by 0.5% in 2016 and by 0.3% in 2017, which amounts to a whooping 1% of growth above the average in three years: Hardly anything to write home about. Here's the GDP growth of the different Spanish regions during the last 5 years, in case anyone's interested.

2013: http://www.ine.es/prensa/np835.pdf

2014: http://www.ine.es/prensa/np901.pdf

2015: http://www.ine.es/prensa/np964.pdf

2016: https://www.ine.es/prensa/cre_2016_1.pdf

2017: https://www.ine.es/prensa/cre_2017_1.pdf
Bah, humbug!
 
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holcakker
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Mon Aug 13, 2018 8:08 pm

There was a huge hike in demand for holidays in Mallorca in the last 3-5 years (because of Turkey, Tunisia and Egypt). Hoteliers got somewhat greedy and the prices nearly doubled. Guess 2019 will be a rude awakening if they keep it this high.
 
chonetsao
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Mon Aug 13, 2018 8:39 pm

It is cheaper to go to Thailand than Gran Canaria. And the hotel food and service is 500% better in Thailand or Bali than Spain (sorry for exaggerate but you get my point). ALC and AGP are famous for its cheap all inclusive holidays, but people have grown out of it as income grows yet the hotel market in those areas continue its down hill in terms of service and modernisation. The sliding pounds certainly does not help the Brits going to those areas. A week in LPA will cost you €1,200.00++ for a reasonable accommodation (notice: reasonable, not a dump fake 4 stars resort, but a 4-5 star resort in international terms like the new Sheraton and Radisson on the island) and €400 air fare (in peak season). Cheap beach holidays for a week in Thailand, Vietnam and Indonesia will cost €700-800 in hotels and €500 in airfares. With a bonus of cultural and scenery on the side. ALC and AGP are still cheaper but the hotels can not be worse than a third world country (think Gambia) except unlimited cheap booze.

One day the hotel industry in Spain and Portugal will catch the reality but it will take a long time before any changes to these markets.

And with the sliding of Turkish currency but yet still relative stable political outlook, Spain will have more headache ahead.

But it will recover and it will go back to growth even more next year. Either British pounds stay at current level and lots of Brits have no choice but going to Spain, or Euro slides to the extremely low level against US dollars and British pounds and more people find Spain attractive in terms of value and safety. I think this downward pressure is just one off.
 
Begues
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Mon Aug 13, 2018 9:04 pm

SCQ83 wrote:
Madrid is among the less polluted major cities in Western Europe.

https://www.telegraph.co.uk/travel/gall ... th/madrid/


BS

From El País

Madrid is by far the worst offender when it comes to exceeding limits for carbon dioxide (set at 200 µg/m3) and tiny polluting particles.


The capital has had pollution issues for years. An almost permanent halo of smog hovers over the city


https://elpais.com/elpais/2017/11/24/in ... 98422.HTML

La Comisión Europea ya advirtió en febrero pasado a España que debe resolver el «incumplimiento constante» de los límites de NO2 en Madrid o se expone a sanciones.


http://www.elmundo.es/madrid/2017/11/23 ... b45ca.html
 
mdavies06
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 1:02 am

Perhaps it is due to a weak GBP, heatwave in many parts of Europe dampening demand to the Med and a general recovery in tourism in Turkey and North Africa. For tourists Spain is not as cheap as say North Africa but it is also more upmarket, so higher prices in general is expected and there is nothing wrong with that.
 
CRJ900
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 2:14 am

Here in Scandinavia there have been several reports on TV news and articles in newspapers about Spaniards being sick and tired of tourists, especially in Barcelona and Mallorca, and many people have decided not to visit Spain this year but try something new. Also, Scandinavia has had a very hot summer lasting two months - many took their holiday at home instead. Many are also tired of visiting places with millions of other tourists at the same time - there are no authentic experiences to be had. I visited Mallorca for a week last September, hoards of tourists everywhere all the time - it was okay but I have no desire to return in the foreseeable future.
Come, fly the prevailing winds with me
 
SCQ83
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 7:17 am

J4YC3 wrote:
is just plainly untrue. Madrid's GDP only started growing above the Spanish average in 2015, and from then on it's just been by 0.2% in 2015, by 0.5% in 2016 and by 0.3% in 2017, which amounts to a whooping 1% of growth above the average in three years: Hardly anything to write home about. Here's the GDP growth of the different Spanish regions during the last 5 years, in case anyone's interested.


You got to couple it with demographic growth:

http://www.ine.es/prensa/pad_2018_p.pdf

The total population in Spain grew by 132,000 people in 2017, of which 69,000 in Madrid (which represents about 15% of the total Spanish population). More than double the growth in Catalonia, for instance. So like passenger growth, half of demographic growth in Spain took place in Madrid. Again, growth is completely distorted favouring Madrid. As for the links you posted, it shows that, again, Madrid grows higher than the Spanish average.

If you look at employment, Madrid is with Baleares and Canarias (those two related to the tourism boom discussed in this thread) the only three regions that have more workers now that before the financial crisis. All other regions (including Catalonia) have not yet recovered all the lost jobs since 2008:

https://elpais.com/ccaa/2018/01/03/madr ... 54901.html

Data is very easy to interpret. Half of the passenger growth in Spain is in Madrid. Half of the demographic growth in Spain is in Madrid. Economically, Madrid is the only mainland region that is actually wealthier now than before the crisis. So in a way Madrid/Spain is starting to resemble something like London/UK, where London is in a completely different world than the rest of the UK when it comes to any economic metric.
 
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seahawk
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 7:38 am

Less a problem of Spain, but a result of the demise of Air Berlin and Monarch, who were big players in the market and where it took time to recover the lost capacity.
 
SCQ83
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 7:48 am

seahawk wrote:
Less a problem of Spain, but a result of the demise of Air Berlin and Monarch, who were big players in the market and where it took time to recover the lost capacity.


Air Berlin went bankrupt in August 2017. Monarch in October.

Not an excuse, carriers have had almost a year to add capacity (like Laudamotion/Ryanair has made).
 
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seahawk
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 7:53 am

But the capacity was scare at least until March/April 2018. I know how many times I had to rebook my flight to PMI in February 2018. And even trying to book flights to ALC for February 2019 saw less options that what you had in 2016.
 
SCQ83
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 8:35 am

seahawk wrote:
But the capacity was scare at least until March/April 2018. I know how many times I had to rebook my flight to PMI in February 2018. And even trying to book flights to ALC for February 2019 saw less options that what you had in 2016.


Yes but as I mentioned prices this summer are extremely cheap.

Look for instance for this coming Saturday, August 18.

OE140 LAUDAMOTION DUS-PMI 24.99 EUR
OE522 LAUDAMOTION DUS-PMI 24.99 EUR
OE524 LAUDAMOTION DUS-PMI 24.99 EUR

EW6801 EUROWINGS LEJ-PMI 24.99 EUR
EW6813 EUROWINGS DTM-PMI 24.99 EUR
EW582 EUROWINGS CGN-PMI 29.99 EUR
EW588 EUROWINGS CGN-PMI 29.99 EUR
EW596 EUROWINGS CGN-PMI 29.99 EUR
EW6809 EUROWINGS PAD-PMI 29.99 EUR
EW6829 EUROWINGS BRE-PMI 29.99 EUR
EW8598 EUROWINGS TXL-PMI 29.99 EUR
EW9568 EUROWINGS DUS-PMI 29.99 EUR

So for this Saturday, there are 8 flights from NRW to Palma for less than 30 Euros. And Eurowings does not usually give tickets away in the same fashion as Ryanair does. Eurowings selling tickets for 29.99 EUR in peak season is quite an odd thing.
 
Kadish
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 8:37 am

chonetsao wrote:
It is cheaper to go to Thailand than Gran Canaria. And the hotel food and service is 500% better in Thailand or Bali than Spain (sorry for exaggerate but you get my point). ALC and AGP are famous for its cheap all inclusive holidays, but people have grown out of it as income grows yet the hotel market in those areas continue its down hill in terms of service and modernisation. The sliding pounds certainly does not help the Brits going to those areas. A week in LPA will cost you €1,200.00++ for a reasonable accommodation (notice: reasonable, not a dump fake 4 stars resort, but a 4-5 star resort in international terms like the new Sheraton and Radisson on the island) and €400 air fare (in peak season). Cheap beach holidays for a week in Thailand, Vietnam and Indonesia will cost €700-800 in hotels and €500 in airfares. With a bonus of cultural and scenery on the side. ALC and AGP are still cheaper but the hotels can not be worse than a third world country (think Gambia) except unlimited cheap booze.

One day the hotel industry in Spain and Portugal will catch the reality but it will take a long time before any changes to these markets.

And with the sliding of Turkish currency but yet still relative stable political outlook, Spain will have more headache ahead.

But it will recover and it will go back to growth even more next year. Either British pounds stay at current level and lots of Brits have no choice but going to Spain, or Euro slides to the extremely low level against US dollars and British pounds and more people find Spain attractive in terms of value and safety. I think this downward pressure is just one off.


Obviously if u go to the all inclusive hotels in Malaga or Alicante you will only find standard food n red necks from everywhere...believe me, there is more life beyond that in Alc,agp...
 
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OA260
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 9:16 am

SCQ83 wrote:
seahawk wrote:
But the capacity was scare at least until March/April 2018. I know how many times I had to rebook my flight to PMI in February 2018. And even trying to book flights to ALC for February 2019 saw less options that what you had in 2016.


Yes but as I mentioned prices this summer are extremely cheap.


.


Although certainly not from a lot of markets where prices have been as high as ever . This weekend DUB-AGP-DUB on EI will set you back around EUR300.
 
SCQ83
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 9:18 am

OA260 wrote:
Although certainly not from a lot of markets where prices have been as high as ever . This weekend DUB-AGP-DUB on EI will set you back around EUR300.


But Ireland was not affected by Monarch or Air Berlin :).

And arguably Mallorca-Germany is (with Costa del Sol-UK) the largest seasonal market in Spain. And I think seahawk is based in Germany.
 
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OA260
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 9:29 am

SCQ83 wrote:
OA260 wrote:
Although certainly not from a lot of markets where prices have been as high as ever . This weekend DUB-AGP-DUB on EI will set you back around EUR300.


But Ireland was not affected by Monarch or Air Berlin :).

And arguably Mallorca-Germany is (with Costa del Sol-UK) the largest seasonal market in Spain. And I think seahawk is based in Germany.


To get a real picture we would need to look at least 100 routes from all over Europe over a period of May-Sept to get a fair picture to be honest. As for Monarch other UK airlines increased capacity from major UK airports and this weekend from UK to AGP is between £200-£300. Just looking at London and Manchester departures. Certainly nothing like £29.99.
 
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seahawk
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 10:17 am

SCQ83 wrote:
seahawk wrote:
But the capacity was scare at least until March/April 2018. I know how many times I had to rebook my flight to PMI in February 2018. And even trying to book flights to ALC for February 2019 saw less options that what you had in 2016.


Yes but as I mentioned prices this summer are extremely cheap.

Look for instance for this coming Saturday, August 18.

OE140 LAUDAMOTION DUS-PMI 24.99 EUR
OE522 LAUDAMOTION DUS-PMI 24.99 EUR
OE524 LAUDAMOTION DUS-PMI 24.99 EUR

EW6801 EUROWINGS LEJ-PMI 24.99 EUR
EW6813 EUROWINGS DTM-PMI 24.99 EUR
EW582 EUROWINGS CGN-PMI 29.99 EUR
EW588 EUROWINGS CGN-PMI 29.99 EUR
EW596 EUROWINGS CGN-PMI 29.99 EUR
EW6809 EUROWINGS PAD-PMI 29.99 EUR
EW6829 EUROWINGS BRE-PMI 29.99 EUR
EW8598 EUROWINGS TXL-PMI 29.99 EUR
EW9568 EUROWINGS DUS-PMI 29.99 EUR

So for this Saturday, there are 8 flights from NRW to Palma for less than 30 Euros. And Eurowings does not usually give tickets away in the same fashion as Ryanair does. Eurowings selling tickets for 29.99 EUR in peak season is quite an odd thing.


Yes, because that capacity came to the market too late. Tour operators were limited by the available seats for the flights and not the number of hotel rooms they could buy when they planed the summer season Spain for Germany. So hotels sold the rooms to operators from other regions. When the seats became available there were only few rooms left. Laudamotion was practically not an option for a tour operator until May 2018. Before that you would not sell a package deal with a flight operated by them, as it was far from certain they would fly. And what was bad in winter/spring would be a catastrophe in summer, when booking the guests on other flights would have been hopeless with the secure capacity available.
 
LupineChemist
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 10:40 am

I think the biggest issue for Spanish holiday airports this year was that it has been hot and sunny across N. Europe this summer.

Yes economy is growing in Madrid and international business is slowly concentrating there. Yet to be seen if there will be a long term Montréal effect from businesses moving from Barcelona to Madrid due to the Catalan issue. Once the Castellana Norte project gets underway, there will be a lot more flights as the construction is just massive in scale. (They are basically redeveloping a whole neighborhood in the urban core for many billions of euros in a short time)
 
SCQ83
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Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 11:01 am

LupineChemist wrote:
I think the biggest issue for Spanish holiday airports this year was that it has been hot and sunny across N. Europe this summer.

Yes economy is growing in Madrid and international business is slowly concentrating there. Yet to be seen if there will be a long term Montréal effect from businesses moving from Barcelona to Madrid due to the Catalan issue. Once the Castellana Norte project gets underway, there will be a lot more flights as the construction is just massive in scale. (They are basically redeveloping a whole neighborhood in the urban core for many billions of euros in a short time)


Madrid Nuevo Norte (the new name for Castellana Norte) is indeed Madrid's response to Canary Wharf or La Défense.

https://www.youtube.com/watch?v=mOMoWOP61zo

The Montréal effect is clearly on its way. But companies in Canada did not move to Toronto overnight... it has just been decades to get to the current situation where YYZ has +- 50 Million PAX and YUL has about 20M.
 
Summa767
Posts: 1834
Joined: Thu Mar 11, 2004 1:30 am

Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 11:29 am

The main contributor to the negative or weak numbers is the drop in UK traffic. I just did a quick comparison of UK passengers to Spanish airports for June and July vs the same months the year before:
A 6.22% drop in July for all Spanish airports that followed a 2.9% drop in June. The most affected is Alicante that saw a 10.3% drop in UK passengers in July. Others like BCN, AGP and IBZ were saw around a 6% drop that month. The drop for June was softer (-.2.1% BCN; -4.4% AGP), but ALC was still the lead dropper at -6.54%.

Undoubtedly there is more than one factor at play. Strikes exacerbated the drop in passengers in July. Monarch's capacity has not been totally fulfilled, UK weather has been good and persuaded some people to holiday at home instead (indeed Cornwall has reported overcrowding in places); and of course the weak pound that has persisted since the Brexit referendum and resulting squeezed wages in the UK means less disposable income for holidays.
August figures should be quite similar to those seen last month.
Last edited by Summa767 on Tue Aug 14, 2018 11:37 am, edited 2 times in total.
 
talonone
Posts: 46
Joined: Sun May 31, 2009 10:32 am

Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 12:21 pm

SCQ83 wrote:
But hey, if people voluntarily move to live in the litteral gas chamber that is Madrid in winter, I guess they have a fettish for breathing poison.


In Winter is Madrid a gas chamber? Little or nothing you know about Madrid, or even Spain.
Madrid has the most polluted air in summer! No rain, no winds, high temperatures.
Jeeezzzz
The space and human stupidity are endless. Maybe the space is not... but the human stupidity for sure!
 
SCQ83
Topic Author
Posts: 5239
Joined: Wed Oct 03, 2012 8:32 pm

Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 2:46 pm

talonone wrote:
SCQ83 wrote:
But hey, if people voluntarily move to live in the litteral gas chamber that is Madrid in winter, I guess they have a fettish for breathing poison.


In Winter is Madrid a gas chamber? Little or nothing you know about Madrid, or even Spain.
Madrid has the most polluted air in summer! No rain, no winds, high temperatures.
Jeeezzzz


You quoted the wrong person.

Anyway I see a lot of bias against Madrid here. Unsurprisingly, some jealous people always like to hate global successful cities like Madrid, London or Berlin. :)
 
PavlovsDog
Posts: 546
Joined: Wed Sep 14, 2005 3:28 am

Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Tue Aug 14, 2018 5:00 pm

holcakker wrote:
There was a huge hike in demand for holidays in Mallorca in the last 3-5 years (because of Turkey, Tunisia and Egypt). Hoteliers got somewhat greedy and the prices nearly doubled. Guess 2019 will be a rude awakening if they keep it this high.
Assuming all other costs are the same they would need to lose half of their customers to not have a positive total margin effect if they have indeed doubled their prices. Let's say a hotel has a 100 rooms, 90 of which were occupied by paying customers each yielding €100 nightly before. That would be €9000 gross before. If they now have indeed doubled their rates and make €200 per night they could be down to 45% occupancy and make the same amount of money. Of course at that occupancy rate they can staff at lower levels which isn't taken into account in my little example.

Assuming they are getting a 70% occupancy they are grossing €5000 more than before. To me that seems like a very good business decision.
 
paml
Posts: 2
Joined: Wed May 02, 2018 1:16 pm

Re: Malaga Airport loses PAX for the first time in 5 years; ALC, IBZ drop; BCN slows down; MAD booms

Sun Nov 25, 2018 5:54 pm

I was wondering where the data was taken from that was used in this quote: "What are your thoughts on the immediate growth of holiday airports (BCN, PMI, AGP, ALC, IBZ, FUE, ACE, LPA, TFS/TFN...)? It seems that they have reached their peak." 5 Years ago I remember reading that the growth in PAX was on the up - https://www.palmaairport.info/2014/08/1 ... ole-spain/ but there does not seem to be any evidence of that trend decreasing, ( Palma De Mallorca +11.7%) as I found out on here: https://airtrafficmanagement.keypublish ... ic-growth/. thanks for your help on this.

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