Continental reports drop in load factor

Continental Micronesia has reported a significant decline in the number of passengers ferried throughout its Pacific operations in September 2000, compared with figures posted during the same month last year.

A report obtained from Continental Micronesia disclosed the carrier’s load factor in its entire Pacific operations dropped 4.6 percent last month from 83.2 percent in September 1999 to only 78.6 percent.

Downturn in visitor traffic throughout the Pacific region pulled down the number of revenue passenger miles by 8.1 percent to 431.622 million in September 2000 from the year ago of the same period’s 469.693 million.

Continental Micronesia’s available seat miles during the period under review also dropped 2.6 percent to 549.291 million from the September 1999’s 564,214.

But the drop may also be blamed on Continental Micronesia’s decision to downsize its air transport services to the Northern Marianas by 572 flights in the first eight months of the 2000 financial year.

The Houston-based carrier’s decision to drop all nonstop flights to the Northern Marianas resulted to a dramatic 19 percent decline in international aircraft traffic between Saipan and major cities in several Asian countries.

Government statistics disclosed Continental Micronesia reduced its services to Saipan by 64 percent between 1997 and 1999, bringing only 74,000 passengers into the CNMI last year.

In 1997, Continental Micronesia had more than 700 direct Japan-Saipan flights each year. The carrier does not currently have even a single direct flight between Saipan and Japan.

The ports authority reported a declining trend in the volume of passengers arriving on Saipan on board Continental Micronesia beginning 1996. The carrier’s passenger haul dropped by 23 percent from 166,000 to 127,000 during the period covering calendar years 1996 and 1997.

In 1998, the volume of passengers brought in by the carrier to Saipan is lower by 23 percent compared with the previous year’s level, from 127,000 to 98,000. The figure dipped further by 25 percent last year, totaling only 74,000 passengers by end-December 1999.

However, the Houston-based carrier’s load factor in the first nine months of the year registered a modest growth from 54.1 percent in the same period last year to 75.2 percent.

The growth in the year-to-date statistics manifest the slow comeback of Asian tourists to both Guam and the Northern Marianas, following major slump in the islands’ tourism sector due to financial upheavals in Japan and Korea.

Continental Airlines also reported a system-wide load factor of 72.4 percent in September, down from last year’s 72.8 percent.

During the same period, the carrier flew 5.2 billion revenue passenger miles and 7.2 available seat miles, resulting in traffic increase of 4.7 percent on a capacity increase of 5.2 percent versus September 1999.

International traffic was 2.1 billion revenue passenger miles, up 7.5 percent from September 1999 and international capacity was 2.8 billion available seat miles, up 8.4 percent from last year.