oneworld alliance revenues rise by a third in 2004 to US$600 million

16 March 2005

Revenues from oneworldTM  alliance sales activities in 2004 rose by a third year-on-year - growing more than twice as fast as its member airlines' overall passenger revenues.

oneworld's consumer fares and corporate sales products and activities generated almost US$600 million in the 12 months for its eight partner carriers - American Airlines, British Airways, Qantas, Cathay Pacific Airways, Iberia, LAN, Finnair and Aer Lingus.

Almost two-thirds of this was classed by its member airlines as "incremental" revenue - money they would not have earned had it not been for oneworld.

Interlining between oneworld airlines - one carrier selling connecting flights on another partner - generated total revenues of more than US$1.5 billion for the eight airlines, including benefits from alliance fares and sales products. That represents one dollar in every 30 earned by the eight carriers from their passenger services overall.

Those interline revenues within oneworld rose 30 per cent year-on-year in 2004, while revenues from the eight airlines' overall passenger activities grew at half that rate (14 per cent).

Around seven million passengers transferred between oneworld member airlines' flights in 2004, one in every 30 customers they boarded throughout the year.

The numbers of passengers transferring between oneworld carriers rose by around 12 per cent on 2003 - against a rise in the eight airlines' overall passenger carryings of around 6 per cent.

As a result, yields from oneworld activity strengthened significantly in the past year, against all industry trends.

oneworld Managing Partner John McCulloch said: "In a business where operating margins are generally so thin, revenues from oneworld represent an increasingly important contribution to our member airlines' financial standings - and we are committed to increasing the contribution the alliance makes.

"Key factors behind this rise in revenues are the quality of the service oneworld and its member airlines provide, our unrivalled international route network and our unmatched range of alliance fares and sales products."

oneworld is the only airline alliance whose members earned a combined profit in the past year - close to US$1.5 billion net, against combined losses by Star carriers totalling more than US$2.2 billion and an overall deficit by SkyTeam's members in excess of US$7 billion.

Revenues generated by oneworld sales activities included earnings from its unrivalled range of alliance fares. oneworld offers a wider selection of alliance tickets than any of its competitors - for captains of industry or student backpackers, whether they want to fly all around the world or explore just one continent.

It also included proceeds from the alliance's contracts with its growing band of corporate customers, bolstered in the past year by its new businessflyer product, targeting small and medium-sized companies in its competitors' core European home markets of France and Germany.

More than 1,600 organisations have registered as businessflyer customers, working with almost a thousand travel agents, attracted by the product's promise of significant discounts on regular prices in return for a more regular relationship with oneworld airlines.

About oneworld: oneworld brings together some of the best and biggest names in the airline business - American Airlines, British Airways, Qantas, Iberia, Cathay Pacific, LAN, Finnair and Aer Lingus - enabling them to offer their customers more services and benefits than any airline can provide on its own. These include a broader route network, opportunities to earn and redeem frequent flyer miles and points across the combined oneworld network and more airport lounges. Together, its members serve 603 destinations in 136 countries. It is the first global alliance with the customer convenience of interline e-ticketing between all its member airlines. oneworld was voted the world's best airline alliance by readers of Business Traveller magazine in its 2004 poll and named the World's Leading Airline Alliance for the second year running in the latest World Travel Awards, based on votes cast by travel professionals from 80,000 agencies in more than 200 countries. Note: LAN affiliate LAN ECUADOR is not a member of oneworld.